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Beware of Airbnb tax pitfalls

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(iStock)
(iStock)

Cape Town - A brief search on Airbnb reveals over 10 000 property listings in Cape Town alone.

This form of income seems ideal – you get to head off for a weekend away or annual holiday destination secure in the fact that you have obtained the ultimate house-sitters – those who will be paying for the privilege.

This in turn also allows for holiday and property expenses to be offset, often significantly if one considers the going rate for a Cape Town property in the peak season.
 
But before spending the Airbnb windfall, Jeremy Burman of Private Client Holdings warns that it is important to consider the tax implications of earning this income and ensuring that adequate provision is made for any resultant tax liability.

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