Revenue has clarified that income from these short-term letting sources is liable to tax.
Some landlords had believed that this income qualified for the rent a room relief (this relief entitles people to earn up to €14,000 tax-free from renting out a room in their home), but Revenue has clarified the short-term lettings advertised through online accommodation sites does not qualify for this relief.
The homeowner will pay tax on the income received after deducting expenses. Therefore, it is important that they keep track of all expenses associated with the letting. These would include Laundry & cleaning, light & heat, food, Commissions paid to websites, Accounting fees etc.
Revenue has confirmed that they have received details of residents in the Republic of Ireland who have used its site to let rooms, apartments or houses and that they have begun writing to hosts reminding them of their obligation to declare this income.
Come and talk to Kearney Naughton & Co for advice on how to reduce your liability. Any costs associated with the letting can be deducted from the income received.