AirBnB & Taxes information

[Arthur Voskanyan]

I have a question; In terms of taxation on income taxes for the IRS, how is rental income treated? For example using AirBnB services? Let’s say my condo makes 30k/yr in AirBNB before taxes, after all my deductions I claims, let’s say it come to 20k that I made, will it be taxed as regular income tax based on my overall income from my other W-2 income, and just put me in whatever bracket? Or does Airbnb income is more like a business income and taxed separately and therefore higher?, aside from my W-2? Thank you BP community All answers appreciated!

[Mike Taravella]

Hello Arthur,

It depends how you structured your business to be honest. If you did it as a proprietor, LLC, S Corp, or Inc are treated differently.

Let me know how you set up the company and I would be happy to help.