Earned Income Tax Credit & Air BnB

eirman

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Does anyone know if the Earned Income Tax Credit of
€1,650 (or 20% of your qualifying earned income), can be applied to Air BnB income.
(The Air BnB is let out for 50 weeks a year).

Revenue says it is not available against your passive income, such as rental income.

According to PayLessTax.ie
letting out a property on a regular basis on Airbnb is accepted as a trade and taxed under the rules for dealing with a trade.
This gives greater scope for the claiming of expenses against the income earned.
 
It depends on whether the Airbnb letting is treated as a trade or as an rental activity. If the former the earned income tax credit should be available and not for the latter. I would also add if you are getting the employee/PAYE tax credit also then the earned income credit won't be available to you. You only get one or the other.
 
Thanks for the reply dublin67.
I applied the Earned Income Tax Credit when filling in her ROS Form 11 return.
She is definitely running the BnB as a trade (with only short term lets).

Next year's return will be more complex as it will be comprised of a six month let and dozens of short term lets.
(The rent-a-room scheme will apply to the six month let).
 
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