Tax season is particularly vexing for freelancers — especially for the growing population of professional AirBnB landlords, according to a report.
Cash-strapped New Yorkers are increasingly turning out their apartments on the hospitality website as a main source of income — more than 8,000 city-dwellers were relying on income from AirBnB to pay housing costs as of the fall of 2013, according to a report released by the company that was reviewed by Vice.
The cash flow has been a stroke of luck for folks looking for extra cash, but hosts will have to fork over a percentage of their earnings by April 15, tax experts told Vice. How much hosts are required to pay can vary wildly according to state and metropolitan area, and an additional hotel tax looms in New York, where a proposed bill could have hosts charging renters an additional 14.7 percent as early as this summer, according to the New York Post.
Some who garner additional income via Airbnb are attempting to stem the impending cash hemorrhage by itemizing deductions, such as new furniture, appliances or other amenities that brighten the appeal of a space to tourists. But unless such fixtures are regularly used, such as air conditioning units, they don’t qualify for deductions, Vice reported. [Vice] and [NYP] – Angela Hunt
(Taxes photo from Shutterstock)