I rent a bachelor apartment for the purpose of renting to guests at a nightly rate. I do not live at said apartment, and it is occupied about 75% of the year. I expected to identify profits as business income, and also to deduct expenses such as rent, internet, supplies, laundry etc. I also began property management activites for separate property in December. To this end I registered a business trade name and identified business activities as Property Management. Other users have indicated that AirBnb is regarded as Rental Income and not Business Income. How should I identify my expenses and income?
Hi alunse,
It is in fact considered rental income. You need to claim both of them as rental properties. So go ahead and claim both of them the same way.
Hope this helps!
It seems like T776 is aimed at people who OWN the property they are renting. I do not own the property, I rent the apartment and I sublet it to others. So each month I have 100% of Rent and Utilities etc as an Expense. I do not see any box/item/line provided for cost of Rent as an expense.
Should I put it in "Other Expenses; Specify:" or should I be claiming this income in a different way?
Hi alunse,
It is in fact considered rental income. You need to claim both of them as rental properties. So go ahead and claim both of them the same way.
Hope this helps!