Friends & Family

[EmptyNest]

You could always explain to family that if they stay in any guest room the IRS will not let you use that room for a business write off for one year.
I'm told the way they catch you on an audit is to say, "What a nice place! I bet your family likes to stay here all the time."
That's why my walk out basement is not part of my B&B, nor is my loft apartment upstairs. I can easily show them where family stays when they air mattress bed in either area.
Riki.

You could always explain to family that if they stay in any guest room the IRS will not let you use that room for a business write off for one year.

WHAT?

Is this true or just something you say to your relatives to scare them off?
.

Actually this is true. If you were to have an IRS audit and they find that family members use guest rooms...you cannot then use as a business deducation. There must be clear separation of family and business use or you don't get the deduction. Of course, someone has to be able to prove that to make it stick.
Another example: It is our home, we use the kitchen for our meal preparation, we could not write off the kitchen use/space as a business deduction. Our CPA used certain percentages of our home as strictly for business use and the rest for private use. IE; We did not use the Living room or the dining room for personal use...we have our own separate dining and family room space.

 

[Proud Texan]

DW and I make our friends and family make a reservation just like anyone else. They don't pay. This would cease and desist if anyone ever began abusing the privilege, but so far it hasn't been a problem because we see everyone so rarely. Breakfast is never an issue because most of our brood don't eat breakfast or eat late.
When our grandchildren come to visit [booked way in advance], we consider that vacation time and accept no guests. Bookings are important, but they don't mean squat if you don't have friends & family. This is life and not just a means to an end.
For those family members you CAN'T stand, lie, lie, lie: "Sorry, we're full for the next month."

 

[gillumhouse]

You could always explain to family that if they stay in any guest room the IRS will not let you use that room for a business write off for one year.
I'm told the way they catch you on an audit is to say, "What a nice place! I bet your family likes to stay here all the time."
That's why my walk out basement is not part of my B&B, nor is my loft apartment upstairs. I can easily show them where family stays when they air mattress bed in either area.
Riki.

You could always explain to family that if they stay in any guest room the IRS will not let you use that room for a business write off for one year.

WHAT?

Is this true or just something you say to your relatives to scare them off?
.

TRUE. Always charge them (or put it on the books as $1). They only allow you to have paying guests but they cannot tell you how much to charge.
Edited to add: The disgusting thing about this is that any hotel/motel GM can comp rooms for friends or family with no problem. We can probaly thank the "hobby" innkeepers for this.

 

[sunburst2]

DW and I make our friends and family make a reservation just like anyone else. They don't pay. This would cease and desist if anyone ever began abusing the privilege, but so far it hasn't been a problem because we see everyone so rarely. Breakfast is never an issue because most of our brood don't eat breakfast or eat late.
When our grandchildren come to visit [booked way in advance], we consider that vacation time and accept no guests. Bookings are important, but they don't mean squat if you don't have friends & family. This is life and not just a means to an end.
For those family members you CAN'T stand, lie, lie, lie: "Sorry, we're full for the next month.".

I agree with P.T. What's life worth without friends and family? I wouldn't charge either to stay with me, my B&B is after all my home. I like to have friends and family visit, and I'm not going to charge my friends or family to stay in my home. So far I haven't lost much paying business I would have otherwise been able to accommodate, so it's easy for me to feel this way. But, If I did I would consider it something I could and should afford to do. I appreciate understanding that I should charge something for comped rooms though, and will start doing that. Is it really sufficient that $1 is charged (and in my case .08 cents tax.)?
Another slightly different twist on charging, and what to charge. I have been approached by a business man who wants to take one of my rooms for 10 weeks while he is in this area. I have checked him out and everything seems totally O.K. At full price the cost would be astronomical, but I offered him a deal that he finds acceptable and I look at it as a bit of a "windfall" also. If I give him a month-to-month lease, with payment due weekly; and take him on as a tenant does that make him a renter rather than a guest, and therefore not subject to paying the lodging tax? I'm thinking that is the case when he is staying longer than 30 days. And, if so what does that do to my B&B business status?

 

[Breakfast Diva]

DW and I make our friends and family make a reservation just like anyone else. They don't pay. This would cease and desist if anyone ever began abusing the privilege, but so far it hasn't been a problem because we see everyone so rarely. Breakfast is never an issue because most of our brood don't eat breakfast or eat late.
When our grandchildren come to visit [booked way in advance], we consider that vacation time and accept no guests. Bookings are important, but they don't mean squat if you don't have friends & family. This is life and not just a means to an end.
For those family members you CAN'T stand, lie, lie, lie: "Sorry, we're full for the next month.".

I agree with P.T. What's life worth without friends and family? I wouldn't charge either to stay with me, my B&B is after all my home. I like to have friends and family visit, and I'm not going to charge my friends or family to stay in my home. So far I haven't lost much paying business I would have otherwise been able to accommodate, so it's easy for me to feel this way. But, If I did I would consider it something I could and should afford to do. I appreciate understanding that I should charge something for comped rooms though, and will start doing that. Is it really sufficient that $1 is charged (and in my case .08 cents tax.)?
Another slightly different twist on charging, and what to charge. I have been approached by a business man who wants to take one of my rooms for 10 weeks while he is in this area. I have checked him out and everything seems totally O.K. At full price the cost would be astronomical, but I offered him a deal that he finds acceptable and I look at it as a bit of a "windfall" also. If I give him a month-to-month lease, with payment due weekly; and take him on as a tenant does that make him a renter rather than a guest, and therefore not subject to paying the lodging tax? I'm thinking that is the case when he is staying longer than 30 days. And, if so what does that do to my B&B business status?
.

Another slightly different twist on charging, and what to charge. I have been approached by a business man who wants to take one of my rooms for 10 weeks while he is in this area. I have checked him out and everything seems totally O.K. At full price the cost would be astronomical, but I offered him a deal that he finds acceptable and I look at it as a bit of a "windfall" also. If I give him a month-to-month lease, with payment due weekly; and take him on as a tenant does that make him a renter rather than a guest, and therefore not subject to paying the lodging tax? I'm thinking that is the case when he is staying longer than 30 days. And, if so what does that do to my B&B business status?

In my county that would be considered a renter. I would suggest that you check him in, charge him for just less than 1 month, then check him out. Check him back in with a different folio #. Do separate payments. This way it's not the same reservation.

 

[Proud Texan]

You could always explain to family that if they stay in any guest room the IRS will not let you use that room for a business write off for one year.
I'm told the way they catch you on an audit is to say, "What a nice place! I bet your family likes to stay here all the time."
That's why my walk out basement is not part of my B&B, nor is my loft apartment upstairs. I can easily show them where family stays when they air mattress bed in either area.
Riki.

You could always explain to family that if they stay in any guest room the IRS will not let you use that room for a business write off for one year.

WHAT?

Is this true or just something you say to your relatives to scare them off?
.

TRUE. Always charge them (or put it on the books as $1). They only allow you to have paying guests but they cannot tell you how much to charge.
Edited to add: The disgusting thing about this is that any hotel/motel GM can comp rooms for friends or family with no problem. We can probaly thank the "hobby" innkeepers for this.
.

TRUE. Always charge them (or put it on the books as $1). They only allow you to have paying guests but they cannot tell you how much to charge.
Edited to add: The disgusting thing about this is that any hotel/motel GM can comp rooms for friends or family with no problem. We can probaly thank the "hobby" innkeepers for this.

How would anyone know? On the books it looks like an unrented room.

 

[mooseberry]

I really feel wrong by charging F&F's since we stay with them for free.
But I had to learn to seperate F&F and business, so I tell them this:
You stay for free in my quarters, like you always did. If you like to stay in the B&B you have to leave a hefty tip.....since I still have to pay the maid.....that settled it with us and everyone is happy.

 

[swirt]

You could always explain to family that if they stay in any guest room the IRS will not let you use that room for a business write off for one year.
I'm told the way they catch you on an audit is to say, "What a nice place! I bet your family likes to stay here all the time."
That's why my walk out basement is not part of my B&B, nor is my loft apartment upstairs. I can easily show them where family stays when they air mattress bed in either area.
Riki.

You could always explain to family that if they stay in any guest room the IRS will not let you use that room for a business write off for one year.

WHAT?

Is this true or just something you say to your relatives to scare them off?
.

TRUE. Always charge them (or put it on the books as $1). They only allow you to have paying guests but they cannot tell you how much to charge.
Edited to add: The disgusting thing about this is that any hotel/motel GM can comp rooms for friends or family with no problem. We can probaly thank the "hobby" innkeepers for this.
.

TRUE. Always charge them (or put it on the books as $1). They only allow you to have paying guests but they cannot tell you how much to charge.
Edited to add: The disgusting thing about this is that any hotel/motel GM can comp rooms for friends or family with no problem. We can probaly thank the "hobby" innkeepers for this.

How would anyone know? On the books it looks like an unrented room.
.

How would anyone know? On the books it looks like an unrented room.

The reality is, they probably wouldn't. The other reality is that sometimes neigbors/other B&B's blow the whistle on their "friends" for a multitude of stupid reasons. In your case this probably would never happen since you are way out, have a lot of land (no looky loo neighbors near by)... If you were right in town, you might not be so lucky.

 

[swirt]

DW and I make our friends and family make a reservation just like anyone else. They don't pay. This would cease and desist if anyone ever began abusing the privilege, but so far it hasn't been a problem because we see everyone so rarely. Breakfast is never an issue because most of our brood don't eat breakfast or eat late.
When our grandchildren come to visit [booked way in advance], we consider that vacation time and accept no guests. Bookings are important, but they don't mean squat if you don't have friends & family. This is life and not just a means to an end.
For those family members you CAN'T stand, lie, lie, lie: "Sorry, we're full for the next month.".

I agree with P.T. What's life worth without friends and family? I wouldn't charge either to stay with me, my B&B is after all my home. I like to have friends and family visit, and I'm not going to charge my friends or family to stay in my home. So far I haven't lost much paying business I would have otherwise been able to accommodate, so it's easy for me to feel this way. But, If I did I would consider it something I could and should afford to do. I appreciate understanding that I should charge something for comped rooms though, and will start doing that. Is it really sufficient that $1 is charged (and in my case .08 cents tax.)?
Another slightly different twist on charging, and what to charge. I have been approached by a business man who wants to take one of my rooms for 10 weeks while he is in this area. I have checked him out and everything seems totally O.K. At full price the cost would be astronomical, but I offered him a deal that he finds acceptable and I look at it as a bit of a "windfall" also. If I give him a month-to-month lease, with payment due weekly; and take him on as a tenant does that make him a renter rather than a guest, and therefore not subject to paying the lodging tax? I'm thinking that is the case when he is staying longer than 30 days. And, if so what does that do to my B&B business status?
.

If I give him a month-to-month lease, with payment due weekly; and take him on as a tenant does that make him a renter rather than a guest, and therefore not subject to paying the lodging tax?
That would be true in our area. Anyone staying 30 days or more is exempt from lodging tax. I am pretty sure it varies by location so you'd have to check it out for yours.
The one thing you can't verify by any kind of background check is whether you would want someone occupying your space for 10 weeks....that is do you really want someone occupying your space for 10 weeks? Someone staying that long will likely have needs that go beyond a simple guest...they start to REALLY feel at home. That's not always a good thing.
DW and I often joke that we have a discount for 4 days or more and should add a de-discount for 7 days or more. Sometimes we just don't want people staying THAT long. LOL

 

[Proud Texan]

You could always explain to family that if they stay in any guest room the IRS will not let you use that room for a business write off for one year.
I'm told the way they catch you on an audit is to say, "What a nice place! I bet your family likes to stay here all the time."
That's why my walk out basement is not part of my B&B, nor is my loft apartment upstairs. I can easily show them where family stays when they air mattress bed in either area.
Riki.

You could always explain to family that if they stay in any guest room the IRS will not let you use that room for a business write off for one year.

WHAT?

Is this true or just something you say to your relatives to scare them off?
.

TRUE. Always charge them (or put it on the books as $1). They only allow you to have paying guests but they cannot tell you how much to charge.
Edited to add: The disgusting thing about this is that any hotel/motel GM can comp rooms for friends or family with no problem. We can probaly thank the "hobby" innkeepers for this.
.

TRUE. Always charge them (or put it on the books as $1). They only allow you to have paying guests but they cannot tell you how much to charge.
Edited to add: The disgusting thing about this is that any hotel/motel GM can comp rooms for friends or family with no problem. We can probaly thank the "hobby" innkeepers for this.

How would anyone know? On the books it looks like an unrented room.
.

How would anyone know? On the books it looks like an unrented room.

The reality is, they probably wouldn't. The other reality is that sometimes neigbors/other B&B's blow the whistle on their "friends" for a multitude of stupid reasons. In your case this probably would never happen since you are way out, have a lot of land (no looky loo neighbors near by)... If you were right in town, you might not be so lucky.
.

How would anyone know? On the books it looks like an unrented room.

The reality is, they probably wouldn't. The other reality is that sometimes neigbors/other B&B's blow the whistle on their "friends" for a multitude of stupid reasons. In your case this probably would never happen since you are way out, have a lot of land (no looky loo neighbors near by)... If you were right in town, you might not be so lucky.

We're so far out that most non-guests are intimidated to even come out here....specially them damn revenuers!

 

[gillumhouse]

You could always explain to family that if they stay in any guest room the IRS will not let you use that room for a business write off for one year.
I'm told the way they catch you on an audit is to say, "What a nice place! I bet your family likes to stay here all the time."
That's why my walk out basement is not part of my B&B, nor is my loft apartment upstairs. I can easily show them where family stays when they air mattress bed in either area.
Riki.

You could always explain to family that if they stay in any guest room the IRS will not let you use that room for a business write off for one year.

WHAT?

Is this true or just something you say to your relatives to scare them off?
.

TRUE. Always charge them (or put it on the books as $1). They only allow you to have paying guests but they cannot tell you how much to charge.
Edited to add: The disgusting thing about this is that any hotel/motel GM can comp rooms for friends or family with no problem. We can probaly thank the "hobby" innkeepers for this.
.

TRUE. Always charge them (or put it on the books as $1). They only allow you to have paying guests but they cannot tell you how much to charge.
Edited to add: The disgusting thing about this is that any hotel/motel GM can comp rooms for friends or family with no problem. We can probaly thank the "hobby" innkeepers for this.

How would anyone know? On the books it looks like an unrented room.
.

How would anyone know? On the books it looks like an unrented room.

The reality is, they probably wouldn't. The other reality is that sometimes neigbors/other B&B's blow the whistle on their "friends" for a multitude of stupid reasons. In your case this probably would never happen since you are way out, have a lot of land (no looky loo neighbors near by)... If you were right in town, you might not be so lucky.
.

If you were right in town, you might not be so lucky.
Solidly true, especially if you were an alien and had ticked off a few of the right people. There is one woman in town who is being very nice to me right now becaue it is in her best interests but I know she would drop a dime so fast if she thought it would sink me.......

 

[Samster]

DW and I make our friends and family make a reservation just like anyone else. They don't pay. This would cease and desist if anyone ever began abusing the privilege, but so far it hasn't been a problem because we see everyone so rarely. Breakfast is never an issue because most of our brood don't eat breakfast or eat late.
When our grandchildren come to visit [booked way in advance], we consider that vacation time and accept no guests. Bookings are important, but they don't mean squat if you don't have friends & family. This is life and not just a means to an end.
For those family members you CAN'T stand, lie, lie, lie: "Sorry, we're full for the next month.".

I agree with P.T. What's life worth without friends and family? I wouldn't charge either to stay with me, my B&B is after all my home. I like to have friends and family visit, and I'm not going to charge my friends or family to stay in my home. So far I haven't lost much paying business I would have otherwise been able to accommodate, so it's easy for me to feel this way. But, If I did I would consider it something I could and should afford to do. I appreciate understanding that I should charge something for comped rooms though, and will start doing that. Is it really sufficient that $1 is charged (and in my case .08 cents tax.)?
Another slightly different twist on charging, and what to charge. I have been approached by a business man who wants to take one of my rooms for 10 weeks while he is in this area. I have checked him out and everything seems totally O.K. At full price the cost would be astronomical, but I offered him a deal that he finds acceptable and I look at it as a bit of a "windfall" also. If I give him a month-to-month lease, with payment due weekly; and take him on as a tenant does that make him a renter rather than a guest, and therefore not subject to paying the lodging tax? I'm thinking that is the case when he is staying longer than 30 days. And, if so what does that do to my B&B business status?
.

Check with your locality. Here, anything over 10 days isn't subject to the lodging tax. I had a long-term guest for 6 weeks and while he wasn't here the entire week each week, he still got the same services except brekkie every day & the room was held for him so he could leave his belongings. It worked out great as it was during one of our slower periods. I checked him in and out during the term of his stay to satisfy the 10 day period. The weekly rate included lodging tax which I'm sure my City was happy to get. That's another solution. The room was booked through a company so I was paid in a lump sum by check.

 

[mooseberry]

DW and I make our friends and family make a reservation just like anyone else. They don't pay. This would cease and desist if anyone ever began abusing the privilege, but so far it hasn't been a problem because we see everyone so rarely. Breakfast is never an issue because most of our brood don't eat breakfast or eat late.
When our grandchildren come to visit [booked way in advance], we consider that vacation time and accept no guests. Bookings are important, but they don't mean squat if you don't have friends & family. This is life and not just a means to an end.
For those family members you CAN'T stand, lie, lie, lie: "Sorry, we're full for the next month.".

I agree with P.T. What's life worth without friends and family? I wouldn't charge either to stay with me, my B&B is after all my home. I like to have friends and family visit, and I'm not going to charge my friends or family to stay in my home. So far I haven't lost much paying business I would have otherwise been able to accommodate, so it's easy for me to feel this way. But, If I did I would consider it something I could and should afford to do. I appreciate understanding that I should charge something for comped rooms though, and will start doing that. Is it really sufficient that $1 is charged (and in my case .08 cents tax.)?
Another slightly different twist on charging, and what to charge. I have been approached by a business man who wants to take one of my rooms for 10 weeks while he is in this area. I have checked him out and everything seems totally O.K. At full price the cost would be astronomical, but I offered him a deal that he finds acceptable and I look at it as a bit of a "windfall" also. If I give him a month-to-month lease, with payment due weekly; and take him on as a tenant does that make him a renter rather than a guest, and therefore not subject to paying the lodging tax? I'm thinking that is the case when he is staying longer than 30 days. And, if so what does that do to my B&B business status?
.

If I give him a month-to-month lease, with payment due weekly; and take him on as a tenant does that make him a renter rather than a guest, and therefore not subject to paying the lodging tax?
That would be true in our area. Anyone staying 30 days or more is exempt from lodging tax. I am pretty sure it varies by location so you'd have to check it out for yours.
The one thing you can't verify by any kind of background check is whether you would want someone occupying your space for 10 weeks....that is do you really want someone occupying your space for 10 weeks? Someone staying that long will likely have needs that go beyond a simple guest...they start to REALLY feel at home. That's not always a good thing.
DW and I often joke that we have a discount for 4 days or more and should add a de-discount for 7 days or more. Sometimes we just don't want people staying THAT long. LOL
.

I rented out 2 rooms all summer last year and did not have any problems . I will again this winter but for a monthly rate. No Brekkie thou. Maid service once a week, well at least changing sheets. garbage more often if needed.

 

[Samster]

DW and I make our friends and family make a reservation just like anyone else. They don't pay. This would cease and desist if anyone ever began abusing the privilege, but so far it hasn't been a problem because we see everyone so rarely. Breakfast is never an issue because most of our brood don't eat breakfast or eat late.
When our grandchildren come to visit [booked way in advance], we consider that vacation time and accept no guests. Bookings are important, but they don't mean squat if you don't have friends & family. This is life and not just a means to an end.
For those family members you CAN'T stand, lie, lie, lie: "Sorry, we're full for the next month.".

I agree with P.T. What's life worth without friends and family? I wouldn't charge either to stay with me, my B&B is after all my home. I like to have friends and family visit, and I'm not going to charge my friends or family to stay in my home. So far I haven't lost much paying business I would have otherwise been able to accommodate, so it's easy for me to feel this way. But, If I did I would consider it something I could and should afford to do. I appreciate understanding that I should charge something for comped rooms though, and will start doing that. Is it really sufficient that $1 is charged (and in my case .08 cents tax.)?
Another slightly different twist on charging, and what to charge. I have been approached by a business man who wants to take one of my rooms for 10 weeks while he is in this area. I have checked him out and everything seems totally O.K. At full price the cost would be astronomical, but I offered him a deal that he finds acceptable and I look at it as a bit of a "windfall" also. If I give him a month-to-month lease, with payment due weekly; and take him on as a tenant does that make him a renter rather than a guest, and therefore not subject to paying the lodging tax? I'm thinking that is the case when he is staying longer than 30 days. And, if so what does that do to my B&B business status?
.

If I give him a month-to-month lease, with payment due weekly; and take him on as a tenant does that make him a renter rather than a guest, and therefore not subject to paying the lodging tax?
That would be true in our area. Anyone staying 30 days or more is exempt from lodging tax. I am pretty sure it varies by location so you'd have to check it out for yours.
The one thing you can't verify by any kind of background check is whether you would want someone occupying your space for 10 weeks....that is do you really want someone occupying your space for 10 weeks? Someone staying that long will likely have needs that go beyond a simple guest...they start to REALLY feel at home. That's not always a good thing.
DW and I often joke that we have a discount for 4 days or more and should add a de-discount for 7 days or more. Sometimes we just don't want people staying THAT long. LOL
.

I rented out 2 rooms all summer last year and did not have any problems . I will again this winter but for a monthly rate. No Brekkie thou. Maid service once a week, well at least changing sheets. garbage more often if needed.
.

Show them where the trash cans are. lol!

 

[mooseberry]

DW and I make our friends and family make a reservation just like anyone else. They don't pay. This would cease and desist if anyone ever began abusing the privilege, but so far it hasn't been a problem because we see everyone so rarely. Breakfast is never an issue because most of our brood don't eat breakfast or eat late.
When our grandchildren come to visit [booked way in advance], we consider that vacation time and accept no guests. Bookings are important, but they don't mean squat if you don't have friends & family. This is life and not just a means to an end.
For those family members you CAN'T stand, lie, lie, lie: "Sorry, we're full for the next month.".

I agree with P.T. What's life worth without friends and family? I wouldn't charge either to stay with me, my B&B is after all my home. I like to have friends and family visit, and I'm not going to charge my friends or family to stay in my home. So far I haven't lost much paying business I would have otherwise been able to accommodate, so it's easy for me to feel this way. But, If I did I would consider it something I could and should afford to do. I appreciate understanding that I should charge something for comped rooms though, and will start doing that. Is it really sufficient that $1 is charged (and in my case .08 cents tax.)?
Another slightly different twist on charging, and what to charge. I have been approached by a business man who wants to take one of my rooms for 10 weeks while he is in this area. I have checked him out and everything seems totally O.K. At full price the cost would be astronomical, but I offered him a deal that he finds acceptable and I look at it as a bit of a "windfall" also. If I give him a month-to-month lease, with payment due weekly; and take him on as a tenant does that make him a renter rather than a guest, and therefore not subject to paying the lodging tax? I'm thinking that is the case when he is staying longer than 30 days. And, if so what does that do to my B&B business status?
.

If I give him a month-to-month lease, with payment due weekly; and take him on as a tenant does that make him a renter rather than a guest, and therefore not subject to paying the lodging tax?
That would be true in our area. Anyone staying 30 days or more is exempt from lodging tax. I am pretty sure it varies by location so you'd have to check it out for yours.
The one thing you can't verify by any kind of background check is whether you would want someone occupying your space for 10 weeks....that is do you really want someone occupying your space for 10 weeks? Someone staying that long will likely have needs that go beyond a simple guest...they start to REALLY feel at home. That's not always a good thing.
DW and I often joke that we have a discount for 4 days or more and should add a de-discount for 7 days or more. Sometimes we just don't want people staying THAT long. LOL
.

I rented out 2 rooms all summer last year and did not have any problems . I will again this winter but for a monthly rate. No Brekkie thou. Maid service once a week, well at least changing sheets. garbage more often if needed.
.

Show them where the trash cans are. lol!
.

Show them where the trash cans are. lol!

 

[YellowSocks]

DW and I make our friends and family make a reservation just like anyone else. They don't pay. This would cease and desist if anyone ever began abusing the privilege, but so far it hasn't been a problem because we see everyone so rarely. Breakfast is never an issue because most of our brood don't eat breakfast or eat late.
When our grandchildren come to visit [booked way in advance], we consider that vacation time and accept no guests. Bookings are important, but they don't mean squat if you don't have friends & family. This is life and not just a means to an end.
For those family members you CAN'T stand, lie, lie, lie: "Sorry, we're full for the next month.".

I agree with P.T. What's life worth without friends and family? I wouldn't charge either to stay with me, my B&B is after all my home. I like to have friends and family visit, and I'm not going to charge my friends or family to stay in my home. So far I haven't lost much paying business I would have otherwise been able to accommodate, so it's easy for me to feel this way. But, If I did I would consider it something I could and should afford to do. I appreciate understanding that I should charge something for comped rooms though, and will start doing that. Is it really sufficient that $1 is charged (and in my case .08 cents tax.)?
Another slightly different twist on charging, and what to charge. I have been approached by a business man who wants to take one of my rooms for 10 weeks while he is in this area. I have checked him out and everything seems totally O.K. At full price the cost would be astronomical, but I offered him a deal that he finds acceptable and I look at it as a bit of a "windfall" also. If I give him a month-to-month lease, with payment due weekly; and take him on as a tenant does that make him a renter rather than a guest, and therefore not subject to paying the lodging tax? I'm thinking that is the case when he is staying longer than 30 days. And, if so what does that do to my B&B business status?
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If I give him a month-to-month lease, with payment due weekly; and take him on as a tenant does that make him a renter rather than a guest, and therefore not subject to paying the lodging tax? I'm thinking that is the case when he is staying longer than 30 days. And, if so what does that do to my B&B business status?

Here they would be considered tenants or "permanent guests" and be exempt from paying lodging tax. Our lodging tax form even has a line for income from them, "Exempt Rents (permanent guests)" so our B&B status would not be endangered in any way by having guests that stay more than 30 days.
What IS an issue to consider is that after 30 days in most states (MD and OH for sure) lodgers become tenants and are then under tenant law, which is broad and far-reaching. Tenants have rights in every state which mere lodgers in hotels do not possess, and legal redress when their landlords infringe on those rights.
We had a "hotel" here that closed recently. They had people staying months at a time, but after 30 days you had to check out and move into a different room. (At least, I assumed they moved them to another room.... there were notes on the back of the doors about the necessity of checking out at the end of 30 days.) Well, they sold the hotel and will be tearing it down and making it into an access road (which will be an improvement for the neighborhood!). But then the paper had sob stories about these poor tenants who were going to be homeless and out on their ear. Um, hello? Not tenants! (And besides, the access road is being put in for the Salvation Army's new mega-center and they're all about helping homeless and other down-and-outers!)
Anyway, yes exempt unless you take some measures, but it shouldn't impact your status if you take him. You will be subject to landlord-tenant law, but that's probably not a big deal. In my case, the 8 week stay last year worked out because we had several weekends we were already booked and she vacated and came back a few times.
Good luck!
=)
Kk.

 

[rrh]

I am just about to tell my family to go suck rocks!!!
Why is it so difficult for them understand that we got into this business for our benefit and hopefully to make our future better and brighter. Don't blame us for changing the dynamics of the family, just try to adjust with us will ya? Why is it they can't come for a visit when we tell you we are slow and have lots of room for them? Why do they only want to come when we are really busy?
Tomorrow we will have owned our B&B for one year! We may have time to celebrate by sharing a pretzel or something quick. This holiday family stuff is difficult. Maybe another year will bring some new attitudes and better plans.

 

[gillumhouse]

I am just about to tell my family to go suck rocks!!!
Why is it so difficult for them understand that we got into this business for our benefit and hopefully to make our future better and brighter. Don't blame us for changing the dynamics of the family, just try to adjust with us will ya? Why is it they can't come for a visit when we tell you we are slow and have lots of room for them? Why do they only want to come when we are really busy?
Tomorrow we will have owned our B&B for one year! We may have time to celebrate by sharing a pretzel or something quick. This holiday family stuff is difficult. Maybe another year will bring some new attitudes and better plans..

Happy Anniversary!! Congratulations on your 1st year.
Families only understand what impacts them. They have no idea what we do. They are John Q Public who think we just meet & greet. THEY are the ones who have to go to work every day and deal with a boss and after all, YOU just do what you want to do...... Right!

 

[Innkeeper To Go]

You could always explain to family that if they stay in any guest room the IRS will not let you use that room for a business write off for one year.
I'm told the way they catch you on an audit is to say, "What a nice place! I bet your family likes to stay here all the time."
That's why my walk out basement is not part of my B&B, nor is my loft apartment upstairs. I can easily show them where family stays when they air mattress bed in either area.
Riki.

You could always explain to family that if they stay in any guest room the IRS will not let you use that room for a business write off for one year.

WHAT?

Is this true or just something you say to your relatives to scare them off?
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TRUE. Always charge them (or put it on the books as $1). They only allow you to have paying guests but they cannot tell you how much to charge.
Edited to add: The disgusting thing about this is that any hotel/motel GM can comp rooms for friends or family with no problem. We can probaly thank the "hobby" innkeepers for this.
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TRUE. Always charge them (or put it on the books as $1). They only allow you to have paying guests but they cannot tell you how much to charge.
Edited to add: The disgusting thing about this is that any hotel/motel GM can comp rooms for friends or family with no problem. We can probaly thank the "hobby" innkeepers for this.

How would anyone know? On the books it looks like an unrented room.
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How would anyone know? On the books it looks like an unrented room.

The reality is, they probably wouldn't. The other reality is that sometimes neigbors/other B&B's blow the whistle on their "friends" for a multitude of stupid reasons. In your case this probably would never happen since you are way out, have a lot of land (no looky loo neighbors near by)... If you were right in town, you might not be so lucky.
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If you were right in town, you might not be so lucky.
Solidly true, especially if you were an alien and had ticked off a few of the right people. There is one woman in town who is being very nice to me right now becaue it is in her best interests but I know she would drop a dime so fast if she thought it would sink me.......
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Ah small town living...it's the same everywhere.

 

[Morticia]

I am just about to tell my family to go suck rocks!!!
Why is it so difficult for them understand that we got into this business for our benefit and hopefully to make our future better and brighter. Don't blame us for changing the dynamics of the family, just try to adjust with us will ya? Why is it they can't come for a visit when we tell you we are slow and have lots of room for them? Why do they only want to come when we are really busy?
Tomorrow we will have owned our B&B for one year! We may have time to celebrate by sharing a pretzel or something quick. This holiday family stuff is difficult. Maybe another year will bring some new attitudes and better plans..

Congrats on your anniversary!
It does get better with family. We block off specific times and tell everyone to 'come on down!' Other than that, we apologize that we can't make it to this or that and we're sorry but if they really have to come on such and such a date we'll be happy to point them to a good hotel. (My family is not the B&B crowd.)