air b n b in one room out in my house

thebourke · 11-10-2018 10:15pm #1

i own my own house...and am thinking of air b n b ing one room out ...do you have to pay tax..if so ..how much roughly?

goldenhoarde · 11-10-2018 10:19pm

thebourke wrote: »

i own my own house...and am thinking of air b n b ing one room out ...do you have to pay tax..if so ..how much roughly?

Less hassle to rent a room

Up to 14000 is tax free

Granted the money might not air b n b money but less work

Also location will be factor plus transport etc around your house

Samuel T. Cogley · 11-10-2018 10:46pm

You'll pay roughly 50% tax as a rule of thumb. So for every €1 you'd make with RAR you'll have to make €2 with AirBnB. Plus you'll have to clean the bedroom every new visit with clean sheets etc. Really not worth the hassle.

Samuel T. Cogley · 12-10-2018 2:34pm

D_D wrote: »

Not true if you remain below the rent-a-room relief threshold of €14,000 per year.

https://www.airbnb.ie/help/article/1122/rent-a-room-relief--ey-summary-of-technical-position?ibbe=1

However, once you go above the threshold, the entire amount is taxable.

AirBnB income is not exempt under RAR rules AFAIK. I thought this was clarifiesd recently? RAR could not be short term lets.

antoinolachtnai · 12-10-2018 2:35pm

I hope you don’t plan on relying on that advice.

Spanish Eyes · 12-10-2018 2:37pm

Air bnb does NOT come within the RAR scheme.

D_D · 12-10-2018 2:38pm

Apologies, I removed my reply after some further digging. You were just too quick for me...

Samuel T. Cogley · 12-10-2018 2:40pm

D_D wrote: »

Apologies, I removed my reply after some further digging. You were just too quick for me...

Sorry, Boards is playing up for me I thought your post was gone due to Gremlins.

Spanish Eyes · 12-10-2018 2:42pm

My sister has a spare room. She takes in lodgers under RAR scheme.

She is a savvy so and so, and only rents the room on a month's trial. So if it doesn't work out, the lodger is out.

I have to admire her cojones on this. But as she has pointed out, lodgers do not have tenant rights and they must conform to HER rules (with a bit of give and take), otherwise they are given a weeks notice. Works so far for her.

RasTa · 13-10-2018 9:56am

Do the first night under airbnb, or just tell them to pay cash on arrival.

[Deleted User] · 13-10-2018 11:19am

Spanish Eyes wrote: »

My sister has a spare room. She takes in lodgers under RAR scheme.

She is a savvy so and so, and only rents the room on a month's trial. So if it doesn't work out, the lodger is out.

I have to admire her cojones on this. But as she has pointed out, lodgers do not have tenant rights and they must conform to HER rules (with a bit of give and take), otherwise they are given a weeks notice. Works so far for her.

She doesn’t need to give them a months trial, she can kick the out instantly if she feels like it as they are licensees.

ted1 · 13-10-2018 11:20am

RasTa wrote: »

Do the first night under airbnb, or just tell them to pay cash on arrival.

That’s tax evasion and illegal.

Not allowed to give such advice on boards.

[Deleted User] · 13-10-2018 11:49am

ted1 wrote: »

That’s tax evasion and illegal.

Not allowed to give such advice on boards.

Maybe so but that’s how it works. For example any b&b I have stayed in recently asked on check out that if I was looking to stay there again to ring them directly for a cash price rather then using hotels.com or booking.com etc and I will be doing so too.

runawaybishop · 13-10-2018 12:39pm

Alora Damaged School wrote: »

Maybe so but that’s how it works. For example any b&b I have stayed in recently asked on check out that if I was looking to stay there again to ring them directly for a cash price rather then using hotels.com or booking.com etc and I will be doing so too.

That's more to do with cutting out the booking sites comission.

RasTa · 13-10-2018 1:25pm

...

TheChizler · 13-10-2018 1:31pm

Samuel T. Cogley wrote: »

You'll pay roughly 50% tax as a rule of thumb. So for every €1 you'd make with RAR you'll have to make €2 with AirBnB. Plus you'll have to clean the bedroom every new visit with clean sheets etc. Really not worth the hassle.

Only if you're on the higher rate of tax. OP nobody can tell you how much tax you'll pay on a second income, it depends on your entire income and relief situation.

ted1 · 13-10-2018 5:00pm

Alora Damaged School wrote: »

Maybe so but that’s how it works. For example any b&b I have stayed in recently asked on check out that if I was looking to stay there again to ring them directly for a cash price rather then using hotels.com or booking.com etc and I will be doing so too.

That avoids the commission and different than what the poster suggested

Gumbo · 13-10-2018 5:16pm

ted1 wrote: »

Not allowed to give such advice on boards.

We pay for many services using cash only. Taxi, trades etc
It’s not our job to enforce revenues requirements on the person receiving the cash.

ted1 · 13-10-2018 8:10pm

kceire wrote: »

We pay for many services using cash only. Taxi, trades etc
It’s not our job to enforce revenues requirements on the person receiving the cash.

In this case the op and poster are talking about being the recipient not the person paying out the cash which is different.

Sleeper12 · 13-10-2018 8:44pm

Spanish Eyes wrote:

She is a savvy so and so, and only rents the room on a month's trial. So if it doesn't work out, the lodger is out.

Not as savvy as she thinks. Renting a room in your own home the lodger has zero rights and no notice is required

kceire wrote:

We pay for many services using cash only. Taxi, trades etc Itâ€™s not our job to enforce revenues requirements on the person receiving the cash.

I'm only quoting you because you didn't give an official mod warning

Ted is correct the post he quoted was suggesting tax evasion.

Gumbo · 13-10-2018 8:48pm

ted1 wrote: »

In this case the op and poster are talking about being the recipient not the person paying out the cash which is different.

Even so, receiving cash is not a sure fire way of staying that no tax will be paid on it. But I do get what your saying.

Sleeper12 wrote: »

Not as savvy as she thinks. Renting a room in your own home the lodger has zero rights and no notice is required

I'm only quoting you because you didn't give an official mod warning

Ted is correct the post he quoted was suggesting tax evasion.

Not a problem. When I said it wasn’t “our” place to enforce, I meant is general joes, not boards.ie as such.

air b n b in one room out in my house

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