People renting out rooms or homes on Air BnB could be liable to pay income tax of up to 50 per cent on the profits.
Around 4 and a half thousand Irish properties are listed on the website, 79 of those in Co Donegal.
Air BnB allows people to rent out rooms or entire houses on a short term basis.
Revenue has advised that those renting rooms could be liable for capital gains tax if they sell a private home that was previously rented out.
A Director at Mespill Taxation Advisors, Leigh Cullen, says Revenue advises that providing guest accommodation on the site is considered to be trading as a guest house, which is liable to income tax….
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