How do I report my income earned from Airbnb?

by TurboTax• Updated 6 months ago

If you rent out all or part of your property on Airbnb, you must declare your income or losses on your income tax return. You can also deduct expenses related to that income, so be sure to keep all your receipts.

If you only provide basic services to your tenants, such as electricity, parking, and laundry facilities, then you’ll file Form T776, Statement of Real Estate Rentals.
If you provide extra services such as cleaning, security, and meals, you’re likely considered to be self-employed and carrying on a business. In that case, you’ll file Form T2125, Statement of Business or Professional Activities.

If you live in Québec, you may want to consult Revenu Québec’s brochure on Individuals and Rental Income.

Which rental expenses can I claim?

You can deduct reasonable expenses incurred to earn your rental income. If you rent out part of your home, you can claim only the portion of expenses that relate to the rented part.

To calculate the part you can deduct, take the area of the rental space divided by the total area of your home. Multiply that amount by the percentage of time the space was rented in the year, then by the total amount of each expense you’re claiming.

Common deductible rental expenses include:

Supplies, such as bedding and toiletries
Insurance
Interest and bank charges
Professional fees, including legal and accounting fees
Repairs and maintenance if you hired someone to do the work
Property taxes
Travel needed to collect rent, supervise repairs, or manage your properties
Utilities
Prepaid expenses

How do I report my rental income and expenses in TurboTax Online?

Note: Be sure to accurately fill out all your personal information and build your tax profile in TurboTax before you begin. These steps outline the process for reporting rental income and expenses on Form T776.

From the menu, select Find, then enter rental in the search bar.
Select Rental properties from the list, then Go.
Follow the prompts to complete the applicable information and proceed through your return.
When you arrive at the Rental Summary, review your information, then select Done With Rental Income.

How do I report my rental income and expenses in TurboTax Download?

From the menu, select Find, then enter rental in the search bar
Select Rental property from the list, then Go
Follow the on-screen prompts to complete the applicable information and proceed through your return
You’ll arrive at the Rental summary screen. Review your information, then select Done With Rental Income
You’ve now claimed your rental income and expenses