Increase Income Lower Taxes Using Rent-a-Room Income

Please see RESOURCES to learn how sites like Airbnb report your Income to the IRS using a 1099-MISC.  In this lecture we explain the tax form Schedule E. 

REMEMBER: All fees charged by sites like Airbnb, Booking dot com or HomeAway are tax deductible.

How Depreciation can lower your taxes by hundreds to thousands of dollars each year. A Schedule E allows for a a$25,000 a year deduction.  This means the amount of income you are taxed on is minus up to $25,000.

This lecture talks about how to set up Rent-A-Room Income when you don't own the property.  The tax write-offs you are entitled to and the tax write-offs which are only available to property owners.

Even if you don't own the rental property, you can depreciate items that you purchase for the business. 

Examples:

You can depreciate a wide screen TV that you purchase for the guest bedroom.  Or you can depreciate art work or the cost to decorate the rental.  You can depreciate carpet for furniture that you purchase for the rental property.  You can depreciate ALL and any expenses pertaining to the business; You cannot depreciate the property itself.

How I got started in the vacation rental business and how you can do the same.  Easy path to success.in renting a room in your home or entire vacation homes

How and where to market your vacation rental or room for rent.  I didn't include HomeAway.com in the lecture, just know they say people earn an average of $42,000 a year with rentals on their site. 

IMPORTANT - You can also generate interest and rentals when you brand your Facebook page, verify the page using your telephone number and name the page using keywords, such as: 'vacation-rentals-xyzcity''  Over time this one little task will generate search traffic on Facebook.

Marketing your property as well as placing a listing on the top vacation rental platforms helps to ensure success.

Safety is important.  This video shares ways to increase your safety and the safety of your guest.

This lecture also deals with the description of your property and how to set your listing apart from all the other listings in your area.

Be sure you include the following for short-term rentals::

1.  Unopened bar of soap and tissue paper

2.  Towels

3   Hair dryer

4.  Hair conditioner

Note:  Go to the Dollar Store and make up a gift basket of personal items which you give to your guest.  This will go a long way in helping you to get a good review.  You can put toothpaste, tissue paper, dormant, hair conditioner, etc. or not, you make your gift basket about something else.  Just be sure to supply the personal items above.

5.  Easy way for guest to keep up with the key or keys

6.  A map of the area

7.  Restaurant suggestions w/prices - Images are nice; 

8.  Things to do, places to go w/prices

9.  Where the local convince store is

10.  A special place in the refrigerator for their food items.

11.  A small space in the kitchen cabinet for food items

12   If you prepare a wonderful meal and have the whole house smelling with backed goods or meal preparation;  Fix a plate for the guest and put their name on it.  This is an excellent way to share. .

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Small things that make a big difference.