Now that we know how to rent or sublet our accommodation, it’s important to know how to declare our Airbnb income to avoid setbacks with the taxman.
Just like income generated by home meal delivery, carpooling via Blablacar or Uber or any other activity linked to the collaborative economy, income from renting or subletting on Airbnb is subject to taxation. But how should your income be declared? What percentages will be collected by the tax authorities? Why declare your income? We offer a comprehensive guide to the taxation of rental activities on Airbnb.
Why declare Airbnb income?
To answer this question would be to answer the crucial question asked by all those who pay their taxes at the end of the month or year. Just like income tax or import tax (customs), the tax collected on Airbnb activities is used to finance the running of the State. To ensure the proper conduct of administrative policy, and to improve people’s lives.
And let’s face it. The main reason we pay taxes is to be in good standing. To avoid getting into trouble with the taxman, who has almost all the power.
Airbnb income: when must it be declared?
Legislation considers two types of income linked to the collaborative economy. For example, income generated by a collaborative activity and intended for co-consumption (shared cultural outings, for example) need not be declared. The aim is to share costs between individuals, not to generate a profit.
Furnished rentals, on the other hand, which are simply the provision of accommodation to a private individual in return for financial compensation, are subject to tax. So when you rent or sublet your home on Airbnb, you’ll have to report to the tax authorities. But what to declare, and how?
Airbnb income: what to declare and how?
Income from Airbnb activities is subject to the tax regime for furnished rentals. They are therefore declared as industrial and commercial profit (BIC). Basically, any income in excess of 760 euros/year from the rental or subletting of your principal residence is subject to taxation. For secondary residences, this amount is 305 euros/year.
Declaring this income is even easier. All you have to do is enter the total amount of rent received on Airbnb in box 5ND (or 50D for the spouse) of the 2042C form or supplementary income tax return. The tax authorities will take the necessary deductions themselves.
To use this option on your 2042C form, you must first tick the « revenu des locations meublées non professionnels » box in step 3 when requesting the form on impots.gouv.fr.
What income may not be declared?
In general, all income from collaborative activities must be declared. In the case of Airbnb rentals and sublets, income generated by a principal residence is as taxable as income from a second home.
However, only very small amounts are exempt from taxation. This refers to annual rental or sublet income not exceeding 760 euros for a principal residence, and 305 euros for a secondary residence.
Our tips for avoiding problems
Whether you’re renting for a short period of time or working full time, we recommend that, from the moment you start renting or subletting your property, you keep these two points in mind:
- #1. Count the number of days the property is occupied by an Airbnb guest,
- #2. Keep proof of communications with your host, as well as records of the rates charged for your accommodation.
Changes in 2019
From January 1, 2019, collaborative platforms such as Airbnb and Uber, to name but two, will be obliged to report information on the amounts received by their users to the tax authorities.