AirBnB And Tax

AirBnB And Tax
Dr. Friday Tax Tips - One Minute Mo...

 
 
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Dr. Friday 0:00
Good day. I’m Dr. Friday, president of Dr. Friday Tax and Financial Firm. To get more info go, to www.drfriday.com. This is a one minute moment.

A lot of people are thinking about renting out part of their home as an Airbnb – nothing wrong with that. And when you’re doing it, you depreciate part of the house. And I talked about this and other moments, but it comes down to this. When you actually sell let’s say you have an original home that has a basis of you know, $250,000 and you sell it for $250,000 because that’s the basis on the thing, we have zero capital gains, but let’s say you have a house that’s worth $500,000 you only pay $200,000, now you may be outside the exclusion if you’re single. And if you depreciate it, you can now be making a tax-free home into a taxable situation. Make sure you understand your taxes before you make a decision.

Announcer 0:52
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