Is it technically a loss?

[Ernie Be]

Just curious, I am just starting out in the Airbnb venture. If at the end of the year I have ended up not making as much as my expenses is it technically considered a loss or since I own the house, has the house provided me more income? Just interested in how that works. Thanks.

[Erica Calella]

I don't think it's necessarily a bad investment even if your costs exceed your income in the year you're starting out. In addition to appreciation potential, there are a bunch of tax benefits to consider as well... my favorite being that a tax loss can be carried forward to offset future taxable income. So I definitely think understanding the big picture and how your situation aligns with your personal goals should be taken into consideration.