Airbnb Trap

Taxes
Written By Guest User

Hi Barefoot,

I have had a friend of my brother’s flatting with me for the past seven months, for which I have been charging him $150 a week cash. Now he has moved on, I am thinking of renting out his room on Airbnb. Question: would I need to declare that money on my tax return?

Lisa

Hi Lisa,

Yes, you would certainly have to declare it.

Unlike with your mate’s brother, who presumably paid you in cash, Airbnb is all electronic payments.

And therefore the ATO will be able to track the income that comes electronically to you from Airbnb, and they’ll send you a ‘please explain’ letter in the mail.

Given the ATO has the computing power to check these things, it’s also a fair bet they have the ability to send you another letter if you sell your home without factoring in any potential capital gains tax (CGT) ramifications. Talk to your accountant.

Scott

Guest User
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