We are looking closely at financial plans for the next 5 to 10 years and my wife may be stopping regular fulltime work in a few months time depending on the outcome and would like to assess this option for income.
We have a 1 bedroom property in "silicon docks" area of Dublin that has not had any renting problems for the last 20 years since we bought it, has huge rental demand, and I feel we could occupy it for 200 bed nights out of 365 at 200 euro per night using Airbnb.
Thats 40k income approx. for airbnb hosting which would almost replace her job without the normal working stresses (salary in the 50s).
Its currently rented at 1400 thats 16,800 per year and only for we select reliable tenants for 4 years at a time we could probably get 1600 etc if we were greedy
(I know we can claim mortgage interest and management fees against the normal rental scenario whereas I understand these are not allowable with airbnb taxation)
So if my wife becomes a "fulltime" "Airbnb host", it would be her only source of income and therefore the question is does the 20% Standard Rate cutoff may apply, up to c. €33800 ? This is the question as if thats the case it may be worth doing this but not at 40% income tax.
So the tax take might be 9k out of 40k or something like that rather than 18k.
Do we have to setup a limited company for this ? and "employ" my wife ?
We have significant cost of living at this chapter in our lives as in other thread about the desire to mortgage switch our primary residence and this is part of the process (from a lifestyle perspective as well of course)
We have a 1 bedroom property in "silicon docks" area of Dublin that has not had any renting problems for the last 20 years since we bought it, has huge rental demand, and I feel we could occupy it for 200 bed nights out of 365 at 200 euro per night using Airbnb.
Thats 40k income approx. for airbnb hosting which would almost replace her job without the normal working stresses (salary in the 50s).
Its currently rented at 1400 thats 16,800 per year and only for we select reliable tenants for 4 years at a time we could probably get 1600 etc if we were greedy
(I know we can claim mortgage interest and management fees against the normal rental scenario whereas I understand these are not allowable with airbnb taxation)
So if my wife becomes a "fulltime" "Airbnb host", it would be her only source of income and therefore the question is does the 20% Standard Rate cutoff may apply, up to c. €33800 ? This is the question as if thats the case it may be worth doing this but not at 40% income tax.
So the tax take might be 9k out of 40k or something like that rather than 18k.
Do we have to setup a limited company for this ? and "employ" my wife ?
We have significant cost of living at this chapter in our lives as in other thread about the desire to mortgage switch our primary residence and this is part of the process (from a lifestyle perspective as well of course)