Familes to get tax bills for Airbnb earnings - -> independent.ie/business/iris … 41943.html
I really enjoyed that.
Revenue taps another rainy day fund.
A lot of landlords in for a surprise letter from Revenue as they discover their tenants have been subletting to AirnB leaving them with a nice little tax bill and an audit for good measure.
It would be the tenant they’d go after.
Ah joined up thinking…
That would suggest that revenue would look at the PRTB register instead of the property tax register,they wont,they will land the owner with the bill and leave it to the landlord to “sort out”
There was a huge stink kicked up - oh it must be ten, maybe fifteen years ago when Revenue decided to tax the income “families” were making from the Spanish Students Invasion into the suburbs every summer. I’m sure it was on Joe Duffy where an enterprising accountant did up a sample return of the various costs and expenses involved in keeping the students. It included the massive extra electricity and gas bills since those Spanish young 'wans spent all day in the shower! Wisely perhaps, Revenue (sensing a huge workload) decided to back off.
Sounds far fetched. Surely the main piece of information AirBnB is going to be telling Revenue is that they paid €xxx to Joseph A. Bloggs of 1 Main Street, Ballyjamesduff on November 2, 2014. Then Revenue will go after Joseph A. Bloggs for unpaid tax. If the house happened to be owned by Jane Doe and Revenue went after her with a claim that she was renting the premises out on that date she can just show that she was indeed renting it to J.A. Bloggs for the whole year and declared that income and paid tax on it.
How could Revenue bill the landlord for tax on income he didn’t earn? What category would it come under?
This could end up so messy for Revenue that I predict a budget amendment allowing x amount per year tax free from this type of income. People will just buy €1000 televisions and expensive furniture and fittings and write it off against any income together with their broadband and other utility bills. Sure, there’ll be some taxable amount left over but the hassle of calculating and collecting it in most cases won’t make it worthwhile.
Yes - thinking the same myself - perhaps 2-3K allowed tax free.
Whats good for the Goose…would any change to law to cater for Air BnB also apply to the more traditional B&B sector> seems to be little difference between the 2 in most cases
Rent a room is all well and good. But I know of one property that the owner is ostensibly living in, where there has been a constant stream of AirBnBers all summer. The guy would have surpassed the threshold for rent a room with 30 nights rental.
My experience with Revenue is that they basically assume you are guilty of whatever it is they are accusing you of, and you have to go to great lengths and expense to sort the shit out promptly.
If it didn’t personally identify me I would love to tell the world here about my experiences with them over the years, one is actually quite comical.
Interestingly my accountant has told me to keep all receipts when I brought up the subject of airbnb a few months back, never actually got around yet to this whole airbnb business!
As for where it should be going is your yearly tax return, they love nothing better than catch out inconsistencies on returns and the whole purpose of various form filling exercises is to catch you you, despite them already having all the data they need on you.
The Revenue have jumped the gun here, surely all that was needed was a clarification that the rent a room scheme was subject to the tenancy being registered with the PRTB.
They came across from the dark ages whinging about “online accommodation sites”.
Rent-a-room doesn’t require registration with PRTB - I’m not sure it’s even possible to register in those circumstances as the person isn’t a tenant, they’re a licensee.
I’m fairly sure there will be a court case over this so determine what counts under Rent a Room.