see in the UK you can earn up to £7000 on your spare room before you have to declare - it was supposed to be a tax break to encourage people with a big house to take in a lodger ie provide cheap housing but its become an air loopholeIn the US, yes, they send them the 1099. Most of these people are just idiots.Probably seems like big money for those not "in business" who rent a spare room and put the money direct in their pocket without having any rules to follow. I wonder, does the IRS require that air provide copies of a 1099 showing that funds changed hands?We're listed on air, most often their system of recommending prices is laughable. There's hardly a room to be had in the whole of the Highlands at the moment, yet air says I should be charging £75ish for July. Yeah, right, that's lower than my winter rate. Ever heard of supply and demand.Around here, Air is chasing the last dollar. Constantly, I see the prices going lower and lower and lower. Of course most of these people haven't had the taxes catch up to them and they don't realize that they are renting below costs.Well I do think that air has taken a lot of guests from the normal B+B market in our area. When I browse through the air listings near us and see that every visitor has left a glowing review for what I know is a less-than-stellar accommodation I figure that something is changing.
It will be interesting to see if the TA complex of OTAs tries to gobble up air too!.
I laughed a few weeks ago. One guy finally got his city commercial tax bill for all the apartments and he was up in arms that he shouldn't be charged commercial property tax.... hoping that others would chime in.. nope, silence... he's not residential! His property tax bill just went up by 4X. So, now that he's paying all the taxes, let's see him compete for that very last dollar.
Meanwhile, I'm full and I haven't lowered my rate. Now I'm hoping to work on getting the other B&B operators around here to help in the fight to make them pay their taxes... cause it drives them out of business. They were all tax cheats!
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I can imaging though that people not used to B&B would be fooled by air into thinking that's the sort of prices they should be charging.
.Can't speak for the UK, but we have people here in Vermont listing nights at $50.Highlands John said:I can imaging though that people not used to B&B would be fooled by air into thinking that's the sort of prices they should be charging.
The stupid, it burns.
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