Ward Williams Chartered Accountants’ Post

Do you rent out a property or a room in your own home? Did you know that since 1st January 2024, platforms such as Airbnb have been required to notify HMRC of your earnings? Although many landlords report their taxable income to HMRC, others do not and are therefore guilty of tax evasion. The good news is that if you live in the property and earn less than £7,500 a year from hosting on Airbnb, no tax is payable thanks to the Rent-a-Room scheme. If you earn more than £7,500 a year, you’ll need to declare it to HMRC by submitting a self assessment tax return, but you’ll only pay tax on the amount above £7,500. Get in touch if you would like an accountant to help with your individual rental situation. #accountants #airbnb #tax #rentaroom

🏡 Hosting on Airbnb in the UK? Don't forget about tax compliance! Airbnb earnings are not exempt. They are added to your total taxable income and need to reported to HMRC via a Self Assessment tax return. You may have a separate tax-free allowance from your main income if you rent a room on Airbnb. Stay on top of your earnings and avoid penalties. Contact us if you need any help with this or considering tax efficiencies. #airbnbuk #taxcompliance #accountant

Hey BC Airbnb Owners. Has your short term rental been kicked off Airbnb? What do you next? There could be tax implications. Call ZheroTax before you make your next move. We help businesses and individuals reduce their tax owing. #britishcolumbia #airbnb #shorttermrentals #CRA #taxes #taxreduction #taxowing #vancouver

CALLING ALL HOLIDAY LET/SHORT-TERM LET PROPERTY OWNERS! As of 1st January 2024 Airbnb and other short-term let sites are required to send data on their partners' earnings direct to HMRC. According to HMRC this information will be used to identify taxpayers who may be under-reporting their income. If HMRC finds that a taxpayer has not reported all of their income, they may be subject to a penalty of up to 30% of the tax owed - in addition to paying the outstanding tax itself - or ultimately prosecution. So if you're not up-to-date with reporting your rental income, let this be a reminder to do so before serious consequences set in! #virtualassistant #virtualbookkeeper #financesupport #holidayletowners #scottishproperty

A reminder about the new side hustle reporting rules. Do you earn extra income by selling goods (new or second-hand) online? Do you rent out a spare room in your home through Airbnb or a similar scheme? Many people have embraced these opportunities to increase their income and help combat the cost of living crisis. However, sellers with income exceeding £1,000 per year from online transactions should declare their income to HMRC. Tax liability is only incurred if their income from all streams totals more than the personal allowance value of £12,570. Read more here and do share as so many people are not aware. https://lnkd.in/efqZQXvR #SideHustleRules #OnlineSelling #AirbnbIncome #IncomeDeclaration #HMRCRules #TaxLiability

Tax Planning Win: A client owns two properties that he rents out on Airbnb. We helped with a Cost Segregation Study and determined that the client meets the necessary rules/classifications to claim his Airbnb losses on his taxes as a short-term rental. After all the dust settled, the client saved over $75,000 in net Federal and State taxes! Have a similar situation? Let's chat! #taxplanning #airbnb #realestate #costsegregation #study #taxsavings #tech #str #sharmatax

Save tax on property income! 💰🏡 Many Airbnb owners aren’t aware that they could be claiming Capital Allowances in their Airbnb business. The window to claim these allowances is closing! Find out how INSPIRED can help you save tax on your property income. Read more here, https://lnkd.in/eJXHx8fX #airbnb #propertyowners #propertyincome #capitalallowances #tax #savings

If you’re thinking about buying a short-term rental with a partner, it’s important to understand the tax implications that come with it. While partnerships often work well—one person brings the money, the other finds the deal—material participation becomes a lot trickier when two people are involved. Short-term rentals offer significant tax benefits, like being able to offset your ordinary income with rental losses. For example, if you earn $100,000 from your business and lose $40,000 on your Airbnb, you’d only pay taxes on $60,000. However, the IRS has strict tests to determine if you materially participate in the property: 1️⃣ 500 hours of involvement in the rental 2️⃣ 100 hours and more than anyone else 3️⃣ Substantially all participation When you have a partner, meeting these thresholds becomes more difficult. Our advice:  - Make sure one partner qualifies for the tax benefit, or  - Consider using a grouping election if you both have other properties. It’s crucial to plan ahead for tax benefits when investing with a partner. Message us to learn more about how we can help you maximize your tax savings! #RealEstateInvesting #TaxStrategy #ShortTermRentals #BusinessPartnerships #TaxPlanning

Avoiding unwanted #tax burdens as a short term or mid-term rental operator using an Airbnb/VRBO/Booking.com platforms has just gotten more complicated as the Canadian government introduced a range of new tax proposals in its latest budget and new enforcement actions against non-compliant hosts. Proposed in last year’s Fall Economic Statement, the measure stops those non-compliant hosts with local licensing registration requirements from deducting the related expenses when determining income taxes to pay to CRA. Our newest blog explores what a short- and mid-term rental operator/investor needs to know about the latest tax changes and incentives in light of the CRA’s new powers to address tax non-compliance in #realestate transactions. Check it out here https://bit.ly/3WqjrW3

Maximize your Airbnb earnings with these tax write-offs! 🏡💰 From property promotion to cleaning and maintenance, make sure you're taking advantage of all eligible deductions. #airbnbincome #taxwriteoffs #rentalproperty #realestateinvesting #propertymanagement #airbnbhost #TaxDeductions #taxdeductions2024 #ShortTermRentals #propertymaintenance #cleaningservices #FinancialTips #income #SmartInvesting #taxwriteoff #irs #profitsview