Air b&b

kniamh707

Hello everyone! I read that 52% of what you earn on air b&b can go on tax if it is rented out frequently & not occasionally. Is this the case? My annual net income is 30k. I would hope to make 15k annually on the air b&b minus expenses. So taking these figures my income would be 45k & then charged at the 40%rate of tax? Any help much appreciated as this is all completely new territory! Thanks in advance!

relax carry on

https://www.boards.ie/discussion/2058333542/air-b-b

It's tax just like any other additional non PAYE income, you are taxed on your taxable profit as if it was a y other income. Assuming your taxable profit after expenses in 2024 was 14k, that's 30k + 14k as your gross income for the year a single persons standard rate band is 42k for 2024. So 42k of the 44k is tax at 20% tax, plus USC plus PRSI and 2k is is taxed 40% tax plus USC plus PRSI.

DFB-D

https://www.boards.ie/discussion/2058333542/air-b-b

It sounds like Rent a room would be far more benefical to you, you can earn max. 14k without paying tax.

Airbnb is excluded from the above obviously.

kniamh707

Hello! Yes, thank you for the info on that. However, the set - up is more suited for casual stays rather than long term renters. Otherwise rent a room is a good shout.