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Need advice for my tax return. Only income: Airbnb. I'm

Customer Question
Need advice for my...

Need advice for my tax return. Only income: Airbnb. I'm renting a room and sub renting it through Airbnb

Accountant's Assistant: The Expert will know how to help. Please tell me more, so we can help you best.

Wanna know how to fill and what I can deduct

Accountant's Assistant: Is there anything else the Expert should be aware of?

So the question is: In 2016 I earned $12,415 renting a room out on Airbnb. The room is part of a 2 bedroom apartment that I was subleasing from the legal tenant the previous year, and decided to convert it into a rental with his approval. What Tax forms should I fill? Can I deduct my rent pro rated for the days the unit was rented?

Submitted: 4 months ago.Category: Tax
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Customer reply replied 4 months ago
Just for clarification I wasn't subleasing the whole 2 bedroom but only 1 of the two rooms.
Customer reply replied 4 months ago
Posted by JustAnswer at customer's request) Hello. I would like to request the following Expert Service(s) from you: Live Phone Call.
Customer reply replied 4 months ago
Let me know if you need more information, or send me the service offer(s) so we can proceed.
Answered in 17 minutes by:
10/17/2017
Tax Professional: Tax.appeal.168, Tax Accountant replied 4 months ago
Tax.appeal.168
Tax.appeal.168, Tax Accountant
Category: Tax
Satisfied Customers: 4,221
Experience: 3+ decades of varied tax industry exp. Tax Biz owner
Verified

Hello. Thank you for choosing this Q&A service for assistance. My name is Angela. I will be assisting you.

Q1: What Tax forms should I fill?

A1: You would use the Form Schedule E. The bot***** *****ne information from the Schedule E transfers over to the Form 1040.

Link to Form Schedule E:

https://www.irs.gov/pub/irs-pdf/f1040se.pdf

----------------------------------

Q2: Can I deduct my rent pro rated for the days the unit was rented?

A2: Yes you can. See below for a list of common airbnb deductions

----------------------------------

Expenses that can be deducted

As outlined above, taxable rental income is the gross amount of rent received less any allowable expenses. In general, a deductible or allowable expense is one that is ordinary and necessary, has actually been paid (for a cash basis taxpayer) and is not regarded as capital in nature.

Examples of deductible expenses include:

► Advertising

► Cleaning and maintenance services, including laundry services and cleaning supplies purchased

► Utilities, i.e. gas, electricity, TV, Internet, bin collection, etc.

Property insurance, in addition to building and content cover, a deduction can also be claimed for private mortgage insurance (PMI) premiums on rental property. However, if you prepay PMI premiums for more than one year in advance, for each year of coverage you can deduct only part of the PMI payment that will apply to that year

► Property taxes related to the rental property

Interest on a loan/mortgage taken out to buy or improve the rental property

► Fees paid to collect rent, e.g. service fees charged by Airbnb

► Ordinary and necessary travel and transportation ► Repairs, i.e. fixing broken windows, doors, furniture and machines, etc. (See section 6 “Repairs & maintenance vs. improvements – deduct or capitalize”)

Depreciation on amounts paid to acquire the property and to make subsequent improvements (See section 6 “Repairs & maintenance vs. improvements – deduct or capitalize” & section 7 “Depreciation”)

► Amortization of points paid to acquire a mortgage on the rental property

► The cost of managing the property, i.e. legal fees and accountancy fees incurred by the host in connection with renting the property. Homeowners’ association (HOA) fees are also deductible

► Payments made to Guest in the form of refunds (in the event of a reservation cancellation or alteration, or through Airbnb’s Resolution Center).

► Registration fees for relevant conferences or education on property management (i.e. Airbnb Open)

► Rental payments, e.g. rent paid to landlords by tenant hosts.

You may want to refer to the reference source for general guidance for Airbnb rental income.

REFERENCE SOURCE:

https://assets.airbnb.com/eyguidance/us.pdf

If you do not require further assistance with this matter, I ask that you please take the time to scroll to the top of the page and select 3 or more stars to positively rate my response so that I can receive credit for assisting you. A 5 star rating is greatly appreciated. Thank you in advance.

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Customer reply replied 4 months ago
I am filing through Turbotax but the Schedule E doesn't have Rental Payments as a section. Do you know how I can include that for deduction? Also, would you be able to point me towards another service that's possibly free of charges for e-filing?
Tax Professional: Tax.appeal.168, Tax Accountant replied 4 months ago

You can list your prorated rent on Line 19 (Other). You can title it Airbnb tenant host pro-rated rent, or something to that affect.

As for free e-filing, you can try the following link.

https://www.e-file.com/

A positive rating is appreciated. Thank you in advance.

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Customer reply replied 4 months ago
What line would I report it in E-File?
Would you recommend it over TurboTax in this scenario? Or Would we still need Tax assistance?
Customer reply replied 4 months ago
On a side note I was a full time student in 2016 not sure if that play a role somehow
Tax Professional: Tax.appeal.168, Tax Accountant replied 4 months ago

What line would I report it in E-File?

------------------------

What line would you report what in...?

Would you recommend it over TurboTax in this scenario? Or Would we still need Tax assistance?

------------------------------

What are you referring to? Would I recommend what over Turbo Tax?

-----------------------------

You were a full time student, if you meet the qualifications, then you claim education credits on the Form 8863.

Link to Form 8863:

https://www.irs.gov/pub/irs-pdf/f8863.pdf

Ask Your Own Tax Question
Customer reply replied 4 months ago
Would I be able to use e file and fill my tax retur with the info you have me or TurboTax would .be better?
Tax Professional: Tax.appeal.168, Tax Accountant replied 4 months ago

If you are completing the return in Turbo Tax, I would suggest that you use their e-file program. I'm not sure how the stand alone e-file programs work.

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