Less Common Mistakes When Reporting Rental Usage to the IRS
Mistake #6.
Failure to report income from short-term rentals, such as those from Airbnb
Short-term rentals have become increasingly popular in recent years, but many landlords may not realize that they must report all rental income received from these types of rentals on their tax returns. This includes income from Airbnb or other short-term rental platforms.
Mistake #7.
Claiming a rental loss for a property that was not available for rent
Landlords can only claim a rental loss for a property available for rent during the tax year. Claiming a rental loss for an unavailable property could lead to legal issues, penalties, and fines if discovered by the IRS. To avoid these complications, landlords should strive to ensure their property is available for rent and take steps to market it to potential tenants.
LANDLORDS CAN ONLY CLAIM A RENTAL LOSS FOR A PROPERTY AVAILABLE FOR RENT.
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