Selling your Airbnb? Going tree stuck with a huge HSD bill? Watch this!Are you an Airbnb host planning to sell your property?
If your property was primarily used for short-term rental, you may need to pay HSD on the sale. As the property's primary use was for commercial, not for residential purposes. To avoid this, you can either use the property for personal use for more than 50 percent of the time in 1 given year or make sure that it is at least 10 to 20 percent of the rentals are used for a longer period. Also, if you change the use of the property from a short-term rental to a long-term rental, or personal use, or vice versa, this could trigger a change in use for HSD purposes. Now, this means you may need to pay the HSD based on the property's fair market value at the time of the change. To minimize the tax implications, you may want to consult with an accountant to explore feral options and determine the best course of action for your specific situation. Don't let unexpected HSD obligations catch you off guard. Plan ahead, make an informed decision.
If your property was primarily used for short-term rental, you may need to pay HSD on the sale. As the property's primary use was for commercial, not for residential purposes. To avoid this, you can either use the property for personal use for more than 50 percent of the time in 1 given year or make sure that it is at least 10 to 20 percent of the rentals are used for a longer period. Also, if you change the use of the property from a short-term rental to a long-term rental, or personal use, or vice versa, this could trigger a change in use for HSD purposes. Now, this means you may need to pay the HSD based on the property's fair market value at the time of the change. To minimize the tax implications, you may want to consult with an accountant to explore feral options and determine the best course of action for your specific situation. Don't let unexpected HSD obligations catch you off guard. Plan ahead, make an informed decision.
