Are the foreign students staying in folks homes different from Airbnb?

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Branz

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My next door neighbour has had them for years, euro 200 a week, by 3 for say 6 weeks.

She is now all in a didder because her friend told her about AerBnB and the Revenue.
Any insights?
Thanks.
 
Not sure, would not appear to covered by the rent a room scheme as that is described as being for long term occupants:
http://www.citizensinformation.ie/en/housing/owning_a_home/home_owners/rent_a_room_scheme.html

The relief applies only to residential tenancies, not to short-term guest arrangements. The occupants must be using the room on a long-term basis. For example, renting a room to a student for the academic year is covered, but taking in guests for short breaks is not.
 
Revenue's view is that the provision of accommodation to (say) Spanish students is fine from a "rent-a-room" perspective.

They have a different view in relation to Airbnb (which I and many other disagree with).
 
Well I don't see how Airbnb could meet the guidelines of rent a room scheme in that it's the entire property being let?

But if short term rents to e.g. Spanish students qualify, then either Revenue are ignoring their own guidelines or stretching the definition of "academic year".
 
The dispute is over Airbnb rentals in one's home.

Yet "Spanish students" are grand.

Work that one out!
 
Ok, this is a pretty good article on the state of play from the Examiner:
http://www.irishexaminer.com/ireland/airbnb-hosts-may-be-able-to-cut-their-tax-bill-323142.html

Key point:
The distinction is that people who run a B&B are considered to be engaged in a trade while someone who rents a room in their house is not. Many availing of rent a room relief would have other professions — that income is more incidental or casual... Revenue has considered the position for Airbnb and decided that the Airbnb landlord is closer to a traditional B&B landlord than to an individual who rents a room for ‘residential’ rather than ‘guest’ purposes.

On that basis, I would conclude that someone who takes in students as a once off in summer would be more "incidental or casual", could not be considered as engaged in that as a "trade", and should be ok.
 
Revenue have said previously that students are okay.

On that basis, they're okay.

But just because Revenue say that something isn't okay (e.g. Airbnb), that doesn't mean that they're right.
 
What about those who take in college students on a " Digs" basis?
Anyone know what the situation is re paying tax on that?
If someone takes two/ three/ four students in for the college term,that's some amount of money to be taking in on a yearly basis,with no tax being paid.
In Dublin,four students could be approx 400 e per week ( I've actually no idea what the rate is so pure guesstimate)that's 15 k a year.
 
Penny1 said:
What about those who take in college students on a " Digs" basis?
Anyone know what the situation is re paying tax on that?
If someone takes two/ three/ four students in for the college term,that's some amount of money to be taking in on a yearly basis,with no tax being paid.
Click to expand...

They could take it college students and it would be covered but the gross income must be under the revenue threshold.

http://www.citizensinformation.ie/en/housing/owning_a_home/home_owners/rent_a_room_scheme.html
Exclusions from rent-a-room relief
You will not qualify for the relief if:
Your gross income from rent and related services is over €12,000.
(which includes sums that the tenant pays for food, utilities, laundry or similar goods and services)
 
Was onto revenue this morning, as I intend to rent a room to foreign students who would stay for about 2-3 weeks.

The person said it was OK, and it would qualify for the rent a room relief scheme (up to €12,000.00 a year).
 
T McGibney said:
The "advice" on CGT in that article is for the birds, even if the guy giving it describes himself as a tax consultant.
Click to expand...

You mean it's not true. How do people who are so called 'experts' get away with an article that will be read by many people get away with incorrect advice.
 
Bronte said:
You mean it's not true. How do people who are so called 'experts' get away with an article that will be read by many people get away with incorrect advice.
Click to expand...

I don't mean its not true, it's just grossly incomplete and lacks even basic nuance.

CGT exemption is only lost in respect of part of a PPR (eg a room or rooms) if that part is used exclusively for business purposes. This is hardly likely to be the case in most AirBnB host households, where occasional private use, eg of a bedroom, should be sufficient to avoid the "exclusively for business" pitfall.

A basic tax planning tip that the "tax consultant" seemingly has never heard of.
 
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