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Mix of Airbnb and rent a room during the year. Tax implications.

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  • 19-02-2024 12:32pm
    #1
    SharkMX
    Registered Users Posts: 1,045 ✭✭✭


    We are hopefully moving into our house in a few weeks.

    Until we find our feet we were going to airbnb one room in the house.

    But a friend has been given notice in his room share now and is traveling to Oz in July.

    We would like to rent the room to him under the rent a room scheme and could give him a good rate if we dont have to pay tax. But when he leaves in July we want to airbnb the room after that.

    Does the fact we are airbnbing the room and will pay tax on the airbnb income mean we cant do the rent a room tax free scheme for the few months before that?

    Or could we airbnb one room and rent a room a different room?

    Its all very confusing.



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    #2
    bikeman1
    Registered Users Posts: 1,258 ✭✭✭bikeman1


    It's quite simple actually.

    The Air BnB income and associated costs are deemed a trade and you will be income tax (either via Form 11 or Form 12) on top of your other income for the year.

    The rent a room is up to €14,000 per year, which is tax free and also returned on your tax return. Keep records for what is what.



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    #3
    SharkMX
    Registered Users Posts: 1,045 ✭✭✭SharkMX


    https://www.boards.ie/discussion/comment/121787849#Comment_121787849

    Thanks Bikeman. That is very well explained. I was afraid that if you mixed them you would pay tax on the whole lot.



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