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Posted

I have 2 clients with strange incomes this year. 

My military Don Juan bought a home near the oceanfront. He also has another house he is fixing up to sell, from his first marriage. He and new wife moved into the new house near the ocean. Don Juan has many studdly military friends who come to this military area on temporary duty and for time off, both. 

He and wifey have taken to hopping in the 2nd house and renting the oceanfront house to friends on temporary duty/leave sporadically during the summer. 

Off the cuff, I told him the income was straight income, no expenses, "rental of personal property."  (No services provided)

Am I doing him a disservice? Or am I right? 

In the other situation, my retired lady signed up with AirBnB to temporarily rent a room. It went over 14 days, (17 days) and grossed less than $2k. I was going to treat hers the same way. She provided breakfast, but no real services. 

I think I'm right in both cases to put it on L 21 as "other income" and move on. 

Posted

Unless there are expenses related directly and only to the rental, I would agree with how you are handling both of these.  For example, if they hire someone to clean before or after the rentals, and no other times, then maybe you could take that expense.  Or in the second case, if you could calculate the exact cost of providing breakfast for the renter only. 

Love the Arm Candy, Baby! comment, btw.

  • Like 1
Posted
30 minutes ago, Gail in Virginia said:

Unless there are expenses related directly and only to the rental, I would agree with how you are handling both of these.  For example, if they hire someone to clean before or after the rentals, and no other times, then maybe you could take that expense.  Or in the second case, if you could calculate the exact cost of providing breakfast for the renter only. 

Love the Arm Candy, Baby! comment, btw.

Thanks for the reassurance! 

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