Our new PPOR is very well positioned for a holiday rental and given Summer is the perfect time for us to skip the country I'm thinking of Air BnBing our home over the Christmas period. Would this affect the cgt free status of the house if we ever sold?
Yep - it should do. I've been doing a lot of research into this recently. It doesn't mean it's a deal breaker though - just work out what you could potentially make v the future tax bill. If it's only for a small period over xmas I'd assume the apportioned CGT would be quite small but what do I know.....I'm not an accountant Cheers Jamie
But it's probably the extensive record keeping needed to make the calculations that would far outweigh any extra income. Marg
Do you have to claim it as income if it's only for 3 weeks? Could it be classed as a hobby? No more of a weird hobby than stamp collecting!
Yep - would be a bit of a PITA But I assume you'd be able to record all the data easily via Air BnB (dates and rental charges/fees). Especially if it's only once a year over Xmas. Cheers Jamie
That's the easy part. But to be fair to yourself, you should record every cent you spend on the property to add to the cost base...... Marg
Yes it is income and yes it would make the property subject to CGT. I think Jamie started a similar thread here recently.