AirBNB.org, anyone list/host for free? Any tax benefits?

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AirBNB.org, anyone list/host for free? Any tax benefits?

Kristine Batra
Member since 2020 · 7 posts · 4 votes

Hello all,

Has anyone had an experience with a listing through AirBNB.org? Are there are any known tax advantages to giving your space out for free or for a discount?

I have registered my listing through their nonprofit site with a discounted rate (I have a 2-bedroom apt here in Portland,OR) rather than offering for free. Anyone list is for free? Or for a discount fee? Have you had any case workers reach out and facilitate a stay? I recently attended a host2host.com zoom meeting, AirBNB Presents-Product Updates & Refugee Program. They reviewed their 501(c)3 platform (to encourage more listings I presume) and talked extensively about their efforts to resettle refugees.

I know it's fairly new to the platform and I don't see any tax advantages.

Any other thoughts on this new nonprofit from publicly traded airbnb?

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Shannon Paxton
Accountant · Virtual, USA · Member since 2021 · 3 posts · 4 votes
5y

The IRS doesn't allow you to deduct free rent.  It's kind of the same as unpaid rent on a long term residential rental.  Neither are deductible.

However, you are allowed to rent your personal home to your business without reporting the rental income on your personal tax return.  It's knows as the Augusta Rule.  The IRS allows a business owner to rent out their personal home for business related activities or events such as meetings or retreats for up to 14 days per year.  Using this rule, your business takes the tax deduction of spending money on the rented space, but you don't report the rental income on your personal tax return.

Always check with your CPA or tax pro for full details on your unique tax situation.

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  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    5y

    I prefer Vrbo than any form of Airbnb.  I keep my add on Airbnb and pickup some crumbs there.

    0Reply
  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    5y

    Why would I give my houses out for free or at a discount? The tax benefits couldn't possibly match the revenue....

    2Reply
  • Shannon Paxton
    Accountant · Virtual, USA · Member since 2021 · 3 posts · 4 votes
    5y

    The IRS doesn't allow you to deduct free rent.  It's kind of the same as unpaid rent on a long term residential rental.  Neither are deductible.

    However, you are allowed to rent your personal home to your business without reporting the rental income on your personal tax return.  It's knows as the Augusta Rule.  The IRS allows a business owner to rent out their personal home for business related activities or events such as meetings or retreats for up to 14 days per year.  Using this rule, your business takes the tax deduction of spending money on the rented space, but you don't report the rental income on your personal tax return.

    Always check with your CPA or tax pro for full details on your unique tax situation.

    3Reply
  • Kristine Batra
    OP
    Member since 2020 · 7 posts · 4 votes
    5y

    @Shannon Paxton, that’s great info! Thank you so much. I’ll be doing some research on that. :)

    0Reply
  • Kristine Batra
    OP
    Member since 2020 · 7 posts · 4 votes
    5y

    @John Underwood, I should take a deeper look at VRBO! Thanks!!

    0Reply
  • Kristine Batra
    OP
    Member since 2020 · 7 posts · 4 votes
    5y

    @Bruce Woodruff, my better half absolutely agrees with your sentiments, as well! I guess I just wanted to feel philanthropic I suppose - but perhaps a waste of time…

    0Reply
  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    5y
    Originally posted by @Kristine Batra:

    @Bruce Woodruff, my better half absolutely agrees with your sentiments, as well! I guess I just wanted to feel philanthropic I suppose - but perhaps a waste of time…

     Nice of you I guess, but it's not wise to mix business and charity. Run your business for profit and then give your profits to your favorite charity.

    2Reply
  • Alexis A Peinado
    Rental Property Investor · Las Cruces, NM · Member since 2021 · 21 posts · 15 votes
    5y

    @John Underwood why the preference? Or what makes vrbo better?

    0Reply
  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    5y
    Originally posted by @Alexis A Peinado:

    @John Underwood why the preference? Or what makes vrbo better?

     My guests use it. You'd have to ask all of them.

    90% of my bookings come from Vrbo.

    0Reply
  • Ryan MoyerBusiness Member
    Property Manager · Orlando Kissimmee Davenport Salt Lake City, Park City · Member since 2019 · 993 posts · 1k+ votes
    5y
    Originally posted by @Alexis A Peinado:

    @John Underwood why the preference? Or what makes vrbo better?

     It's very market dependent, and dependent on each individual unit too (size, etc).  I would always list on both but if I was only going to list on one I would at least start with both to see which one dominates in my market.  I have a place that rents 90% VRBO and a place that rents 90% airBNB.

    Cosmic Vacations4.9172 Reviews
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  • Cian R.
    Member since 2019 · 71 posts · 22 votes
    4y
    Originally posted by @Shannon Paxton:

    The IRS doesn't allow you to deduct free rent.  It's kind of the same as unpaid rent on a long term residential rental.  Neither are deductible.

    However, you are allowed to rent your personal home to your business without reporting the rental income on your personal tax return.  It's knows as the Augusta Rule.  The IRS allows a business owner to rent out their personal home for business related activities or events such as meetings or retreats for up to 14 days per year.  Using this rule, your business takes the tax deduction of spending money on the rented space, but you don't report the rental income on your personal tax return.

    Always check with your CPA or tax pro for full details on your unique tax situation.

    Shannon, I just heard about this today. Awesome tip! 

    1Reply
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