Welcome! We are a community of AirBnb hosts

This forum is dedicated to connecting hosts with other hosts. Sign up to get the latest updates and news just for AirBnb hosts! Note that we are not affiliated with Airbnb - we are just passionate hosts!

And my loss for the year is (drumroll) .

Working on my US tax filing and my Schedule C loss for the year on STR biz in the suite attached to my primary residence is $9,000. There are a couple factors here.

It’s a modest side business. My gross is not impressive in any year, but was down almost 70% over prior year due to covid restrictions and covid caution.

The crawl space under the suite was wet causing terrible humidity and I had a hit for removal of sodden insulation and waterproofing. Then the dedicated A/C heat pump unit blew (only 7 years old arghhh!) and had to be replaced. So huge unexpected repairs & improvements --which I expensed in entirety under SHST (safe harbor for small taxpayers). rather than gradually capitalizing.

Also expensing per usual the proportional share of mortgage interest, property taxes, building depreciation, solar panel depreciation, utilities, lawn care, and any “whole house” supplies (e.g., the new boot scraper on the back walk), which deflates my gain every year.

I also expense a hefty annual long term care insurance bill. [Correction: Can’t deduct this with a loss, I forgot!]

Getting itchy to open my platform calendars again, post-vaccine. Thank goodness for the sprinkling of off-platform, trusthworthy returning guests!

I even had a pre-wedding breakfast hosted in the back yard by parents of the groom; no restaurants available of course. I have a 5 ft. Statue of Liberty back there, in memory of NYC roots and suitably masked. Photos were taken with it, nicely surrounded by Spanish bluebells.

4 Likes

Which you were able to undertake while the suite is closed. No losing guests, getting bad reviews and being stressed about it all while hosting. win-win.

As spring approaches I’ve been giving a lot of thought to what projects I could or should be doing while I’m closed. It seems like a wasted opportunity if I don’t do something.

5 Likes

Yep, I spent way more than usual tarting up my backyard with plantings and nicer furniture. Covid boredom!
Oh, and the back deck rot had progressed so much I could no longer piecemeal put in new boards, had to hire someone. Another non-routine expense. What a year, in so many ways!

2 Likes

Nothing wrong with a loss if it is offsetting income:) .

RR

1 Like

$40,000 in Air cancellations. Did better with VRBO who didn’t allow cancellations.

“Made” $20,000-ish with Air stock buy in.

I consider my year a $20,000 loss… 100% on Air.

So, yeah, 2020 sucked.

Are you a Trumpian slumlord?

Asking for a friend.

JF

1 Like

Why do some people like to talk about how much money they have?

Mainly they are covering insecurities. Usually the insecurities or short comings they have are attached to interpersonal relationships.
https://www.quora.com/Why-do-some-people-like-to-talk-about-how-much-money-they-have

My father taught me at a very young age it’s not classy to talk about money other than asking him investments, tiping, giving to the church, or negotiating with employer your worth or family. And only proper times and places.”
https://www.quora.com/How-do-you-handle-a-person-who-is-always-talking-about-money

5 Likes

I just looked at My QB for last year and the thing that surprised me was my direct bookings accounted for 26% of my gross last year! Air was about 70% and a few VRBO’s. I knew it was up, really the first good year for directs but I had not done the math on it.

I too had a loss last year, it was due to capital improvements mostly I am not sure how the accountant will sort it out.

RR

1 Like

$40,000 - $20,000-ish = -$20,000ish… That’s a LOSS of $20,000.

$20,000 Loss for the year

Loss = “have” or “had” ?

Dismissed.

1 Like

People who talk about how much they have to total strangers are lying.

5 Likes

As if you had such a power.

I just was posting some interesting takes on why people feel they need to discuss how much money they have. If the shoe fits.

5 Likes

After a terrible year, hosts get to be reminded again of how bad it really was at tax time. :cry:

Even with a few months of long term, I will still have a small loss. Thank goodness for depreciation, though.

Bourbon pouring.

5 Likes

I guess I need an orange spray tan, a bad toupee, and some Russian bankers to make up my losses, but …

2 Likes

That, and for this old poorly insulated house, the energy cost.

I’ve had tax loss carry-forwards for years. I only pay SS self employment tax. I’d love to have some real income.

So far, it’s always been a forced savings program, not an income property, whether I had 3 STR rooms or an apartment on long term. But STR makes more per year.

I. Just. Can’t. Stop. Laughing…

Turbotax ominously rated my audit risk as “medium.” “You have Schedule C income.” “You have high expenses.” “You have a loss on your rental property.” Obvi they haven’t adjusted their algorithms for “pandemic year.”

1 Like

Nor do they understand that if you have an owner occupied rental, you can always have a loss and it’s legal. Only owner occupied rentals up to 6 units, farming, and commercial fishing can run losses for more than 3 years.

2 Likes

That’s interesting.
I look at it on basis of reporting – active or passive.
If you’re on Schedule C, rule of thumb for business is 3 out 5 years profit (2 out of 7 if you’re doing something with horses – another fine example of the power of lobbying $ in the US tax code!). That’s a safe harbor or presumption; there can be mitigating factors. The burden on you is to explain if audited.
I have a loss carry forward on Schedule E long term rental for 5 years since purchased. The rent is offsetting the cost of the significant deferred maintenance and improvements I am doing. The value is in the appreciation of the property.

1 Like

I inherited 25% of the house and 25% of my mother’s tax loss carry forward. I had to by out my 3 siblings, but fortunately my sister was the executor and let me buy the house at appraised value, because if it had gone on the very tight market at the time it would have been bid up past what I could afford.

I look at those mortgage payments as a forced savings plan, with no profit but increased equity. The house has more than doubled in value in the 15 years since I bought it. My problem is that I need a better cash flow in order to refinance. That was supposed to happen now, because last summer was going to be my best year ever, but the pandemic.

I’ve got a house worth $700k and $450k in equity, but accessing that equity to make improvements like adding bathrooms is difficult. Hoping that an SBA disaster loan can help, but not sure yet.

If the SBA doesn’t work out, maybe a HELOC or home equity loan (interest deductible for improvements)? You might be able to match the SBA rate, 10-20 year term, 80% LTV gives you over $100,000.

Altcoin Fantasy - Crypto Fantasy Trading and Simulation Game - Win Bitcoin and Altcoins!