Thousands of Irish people who have rented out rooms in their homes or entire properties using the Airbnb service look set to be hit with …
— Irish Times Business (@IrishTimesBiz) August 10, 2015
..retrospective tax bills.
Seemed like a good idea at the time..
Run!
Airbnb hosts facing retrospective tax bills for 2014 (Irish Times)
Alternatively
Airbnb Arbitrage – How To Pay Off Your Mortgage In Half The Time (Lovin Dublin)
Sponsored Link
The Revenue, the only state body with it’s act together. Unfortunately for us.
Surely Harbo was just bragging and never did any of that, the big nonce.
Harbo:
“I’ve taken in about 15k since the start of the year on the site. That is 15k that I think you can take directly out of the Irish hotel market and in to my pocket. ”
there is probably 50% + of that due in tax.
Less than 50% – prob 40% income tax & 7% USC
‘For many people the income from occasional renting of spare rooms will now be taxed at 51 per cent for 2014.’
They presumably are self-employed with an income over 100,000 & thus have a USC of 11%
I doubt Harbo falls into that category,
Nor I’ll wager do the vast bulk of Air BnBers.
Income Tax – 40%
USC – 7%
PRSI – 4%
Fair point, Bobby R
Yes, welcome to paying tax on your income.
Also, 140 characters, @IrishTimesBiz…………learn to use ’em.
Why on earth would anyone have thought that income would be tax free?
People are stupod…..
Because if you are renting out a single room in your house, it is the same as sub-letting only on a short-term basis.
Because you can rent out up to 14 days tax-free in the US and rent a room in the UK tax-free up to a certain limit.
Because there is a lot of talk about the sharing economy & it would make sense to encourage it since we are trying/hoping to be an internet hub.
How much are revenue going to sting you for?
Spot on. Airbnb’s non-U.S. headquarters is here FFS and Airbnb have repeatedly stated that Ireland’s (Dublin in particular) host take-up rate is terrible compared with other world cities. This is definitely going to reduce the current number of hosts here and slow to a crawl the new host take-up rate.
I think the lack of take-up is a good thing: more Airbnb hosting means more pressure on an an extremely insufficient rental market. I thought hosting was quite popular, actually, as I know quite a few people doing it – two of whom have switched to doing so exclusively because their central properties earn far more from this than a standard tenancy. That’s literally homes for citizens turned into resources for tourists, which is the opposite of what we as a city need. It’s great that people can make a buck instead of letting space go to waste but definitely not something that policy should encourage at the moment.
I personally dislike that an apartment in my block is on Airbnb. I dislike it for the continuous flow of strangers wandering through my building all the time.
Could it be against the ‘house rules’?
I don’t think so unfortunately…
Do you have any arguments that could be made? An apartment is permitted to be rented, and technically, Airbnb is the same thing…
Most management company agreements [which apartment owners agree to when purchasing the property] explicitly prohibit subletting or assigning of lease [as most owners aren’t technically owners at all, but rather freeholder or leaseholders]. So renting out on Airbnb would be in breach of that, but so would renting to regular tenants.
Not “retrospective” at all. 2014 tax returns aren’t due til October.
*Downs tools, rings IKEA* ….take the room kit back, I wont be needing it !