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Updated over 3 years ago on . Most recent reply
Tax Questions on Using My Home's Rooms As AirB&B
I'm about to make my spare bedroom's AirB&B live. My question is what's the best way to report my income on this and also reduce taxes? Put my home in a LLC? We don't want to miss out on the zero capital gain when I sell my home in the future. What's the best strategy here?
Most Popular Reply
Natalie Kolodij
Tax & Financial Services
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- Tax Strategist| National Tax Educator| Accepting New Clients
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A SMLLC has no impact on your taxes.
As long as its space within your primary dwelling unit you still qualify for 121 exclusion (vs. if you were renting 1/2 of a duplex it would impact it)
Whether in your name (sole prop) or a SMLLC- there will be no difference ont ax savings or on your 121 exclusion.
Kolodij Tax & Consulting