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N.J. company tests waters of Airbnb-style backyard pool rentals, report says

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Updated on August 8, 2017 at 2:26 PMPosted on August 8, 2017 at 1:55 PM
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By Jeff Goldman

LAKEWOOD —  A fledgling Lakewood company is attempting to put its own twist on Airbnb stays.

Instead of helping you arrange a short-term rental your home, Pool For U will put your backyard swimming pool on the market, according to app.com. The problem is that there are a slew of legal and insurances hurdles.

Pool For U says it’s a way for people without a pool to access one without a trip to the Shore or a costly pool membership. For homeowners, its helps them offset the thousands of dollars it often costs each year to maintain a swimming pool.

Problems could arise, though, if a homeowner’s insurance company found out, the report said. A policy would be canceled immediately if the insurer learned anyone but the home’s residents or invited guests were using the pool, the report said.

http://www.nj.com/business/index.ssf/2017/08/homeowners_in_lakewood_renting_out_their_pools.html#incart_river_home

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Using Online Services Such as Airbnb to Rent out Your Home? Better Read This!

Airbnb

August 2,2017
JAMES D. BROWN, CPA
(201) 357-5228

Ridgewood NJ, Renting out your home or second home for short periods of time is becoming increasingly popular with the advent of online services that match property owners with prospective renters. The online sites providing these services include Airbnb, VRBO, and HomeAway.

There are special (and often complex) taxation rules associated with renting out your home or second home for short periods of time. In some cases, these rules allow the rental income you receive to be tax-free. In other situations, the rental income and expenses may have to be treated as business income and reported on a Schedule C, as opposed to a rental activity reported on Schedule E.

The following is a synopsis of the rules governing short-term rentals.

Rented for Fewer than 15 Days during the Year – When you rent out your home for fewer than 15 days total during the tax year, the rental income is not reportable, and the expenses associated with that rental are not deductible. However, interest and property taxes need not be prorated, and the full amounts of the qualified mortgage interest and property taxes you pay are reported as itemized deductions (as usual) on your Schedule A, if you itemize your deductions.

The 7-Day and 30-Day Rules – Rentals are generally passive activities, meaning that they are not treated as a trade or business and are not subject to self-employment taxes. However, an activity is not treated as a rental if either of these statements applies:

A. The average customer use of the property is for 7 days or fewer—or for 30 days or fewer if the owner (or someone on the owner’s behalf) provides significant personal services, or

B. The owner (or someone on the owner’s behalf) provides extraordinary personal services without regard to the property’s average period of customer use.

If the activity is not treated as a rental, then it will be treated as a trade or business, and the income and expenses, including prorated interest and taxes, will be reported on Schedule C. IRS Publication 527 states: “If you provide substantial services that are primarily for your tenant’s convenience, such as regular cleaning, changing linen, or maid service, you report your rental income and expenses on Schedule C.” Substantial services do not include the furnishing of heat and light, the cleaning of public areas, the collecting of trash, and such.

Exception to the 30-Day Rule – If the personal services provided are similar to those that are generally provided in connection with long-term rentals of high-grade commercial or residential real property (such as public area cleaning and trash collection), and if the rental also includes maid and linen services that cost less than 10% of the rental fee, then the personal services are neither significant nor extraordinary for the purposes of the 30-day rule.

Profits and Losses on Schedule C – Profit from a rental activity is not subject to self-employment tax, but a profitable rental activity that is reported as a business on Schedule C is subject to this tax. A loss from this type of activity is still treated as a passive-activity loss unless you meet the “material participation” test, generally by providing 500 or more hours of personal services during the year or qualifying as a real estate professional. Losses from passive activities are only deductible up to the income amount from other passive activities, but unused losses can be carried forward to future years. A special allowance for real-estate rental activities with active participation permits a loss against non-passive income of up to $25,000, which phases out when modified adjusted gross income is between $100K and $150K. However, this allowance does NOT apply when the activity is reported on Schedule C.

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Christie Vetoes “Airbnb” Tax Bill

Airbnb

July 23,2017

the staff of the Ridgewood blog

Ridgewood NJ, Gov. Chris Christie vetoed legislation on Friday that would have imposed taxes on the state’s burgeoning “home-sharing” industry.

The bill was an effort to target and regulate an industry dominated by San Francisco-based Airbnb, even as some municipalities in the state move toward banning the practice within their borders.

According to committee testimony Airbnb had 260,000 rentals in New Jersey last year alone and some municipalities such as Jersey City and Newark already have reached agreements with Airbnb to collect 6 percent fees. Other towns primarily those in Atlantic and Cape May counties, and near the New Jersey Meadowlands are permitted to charge additional taxes and fees.

Currently about 17 towns In New Jersey, mostly in Northern New Jersey closer to New York City, have chosen to bar such rentals, including Palisades Park, Englewood Cliffs, Fort Lee, Lyndhurt and Glen Rock.

Not surprisingly the bill two major proponents are the New Jersey Hotel and Lodging Association and the New Jersey Restaurant and Hospitality Association.

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Airbnb bill heads to governor’s desk; to provide millions in tax revenues to municipalities

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By Tom Bergeron, June 20, 2017 at 7:48 AM

A bill that would standardize taxes paid by those staying in short-term residential accommodations such as Airbnb was approved by the state Senate Monday and is heading to Gov. Chris Christie’s desk.

If signed, the legislation would provide more than $6 million in tax revenue for municipalities and the state of the New Jersey, supporters said.

A similar measure, put in place by Jersey City two years, generated approximately $1 million in revenue for Jersey City in 2016.

http://www.njbiz.com/apps/pbcs.dll/article?AID=/20170620/NJBIZ01/170629999/airbnb-bill-heads-to-governors-desk-to-provide-millions-in-tax-revenues-to-municipalities&template=mobileart

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Jersey Shore town’s rule targeting Airbnb rentals to get public hearing

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By Alex Napoliello | NJ Advance Media for NJ.com
on April 30, 2017 at 8:30 AM, updated April 30, 2017 at 8:33 AM

TOMS RIVER — The public will get a chance to chime in on a revised version of a controversial ordinance regulating short-term rentals, like those found on Airbnb and Vacation Rentals By Owner.

The amended ordinance eases restrictions on the minimum number of rental days on properties on the barrier island from three nights to two nights through April 1 through Nov. 30.

“It was determined that a minimum two-day rental during an extended season would be more workable on the barrier island and would not detract from the overall purposes of the ordinance,” it states.

A minimum 30-day stay will be enforced in all other parts of Toms River.

The township’s assistant attorney, Anthony Merlino, told the Asbury Park Press that the original ordinance was introduced after the council received complaints of houses advertised on Airbnb as daily rentals.

http://www.nj.com/ocean/index.ssf/2017/04/public_hearing_scheduled_for_jersey_shore_towns_on.html

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AirBnb: Protect Home Sharing in New Jersey

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By Josh Meltzer • 03/29/17 3:15pm

Fresh off of their victory in the Battle of Trenton, the Continental Army led by George Washington, encamped in Morristown for the winter of 1780. For the months that the army rested, a widow named Theodosia Ford opened up her home to General Washington, his family and his aides, who used her home as military headquarters until the war could resume.

Mrs. Ford’s decision to share her home was not unusual at the time. In fact, from the time of the Revolution and the growth of summer vacation rentals on the Jersey Shore in the 20th century to Portuguese immigrants helping one another find a home and build a community in 21st century Newark, home sharing has a long and storied history in the Garden State.

http://observer.com/2017/03/protect-home-sharing-new-jersey-airbnb/

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Airbnb Regulation Bill Advances in NJ

Ridgewood Real estate

file photo

By JT Aregood • 02/27/17 3:44pm

New Jersey took a step toward allowing its cities to regulate or effectively ban the use of Airbnb Monday, with a bill aiming to ban rental agreements shorter than 30 days advancing in committee. The service, which allows app users to rent out their homes or apartments to travelers for even one-night stays, is currently unregulated in the state.

The bill’s sponsor, Assemblywoman Valerie Vainieri Huttle, called the current lack of regulation a threat to public safety after its successful 7-0 vote in the Assembly Tourism, Gaming and the Arts Committee.

“The current practices of short-term rental businesses lack the necessary safety precautions for our municipalities,” Vainieri Huttle said. “We want residents and tourists to enjoy the options provided by companies like Airbnb, but not at the expense of neighbors who live there on a permanent basis. This legislation creates a baseline registry that municipalities can implement as they see fit.”

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Airbnb: Why a fair tax plan for short-term home renters is good for N.J

Ridgewood Real-estate

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Posted on February 25, 2017 at 10:37 AM

By Star-Ledger Guest Columnist

By Josh Meltzer

In the coming-of-age movie “Garden State,” Zach Braff’s character Andrew Largeman bemoans the disorienting feeling of lacking a home:

“You’ll see one day when you move out…You feel like you can never get it back. It’s like you feel homesick for a place that doesn’t even exist. Maybe it’s like this rite of passage…You won’t ever have this feeling again until you create a new idea of home for yourself.”

That feeling of home, of belonging, is at the heart of Airbnb’s mission. We seek to build a world in which people can belong anywhere — in over 34,000 big cities and small towns in 192 countries worldwide.

It is a sentiment rooted in the warm embrace of our host community — including 6,100 hosts right here in New Jersey who welcomed nearly 260,000 guests in 2016, double the number from 2015. These guests are coming from across the country and around the world, with 24 percent from outside North America.

The vast majority of Garden State hosts are middle class New Jerseyans who share their homes occasionally to pay for their mortgage, medicine, and student loans, or save money for retirement or a rainy day. In fact, last year, the typical host shared their home for fewer than 4 days a month, bringing in $6,200 to help make ends meet.

http://www.nj.com/opinion/index.ssf/2017/02/airbnb_why_a_fair_tax_plan_for_short-term_home_renters_is_good_for_nj_opinion.html

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See how much NJ residents earned through Airbnb

Ridgewood Realestate

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By Dino Flammia February 23, 2017 4:00 AM

In 2016 alone, more than 6,000 New Jersey hosts earned over $50 million by renting out their home or a room to visitors through Airbnb.

Representing a 100 percent increase compared to 2015, New Jerseyans welcomed approximately 257,000 people for a short stay last year, according to figures released this month by the San Francisco-based company.

Airbnb said the typical New Jersey host earns $6,200 in supplemental income annually, often using the extra cash to make rent or mortgage payments, save for retirement or repay student loans.

Typical listings are occupied 44 nights per year, the company said, and the average length of stay is about four nights.

“We are proud to see that more and more New Jerseyans have discovered home sharing as an opportunity to share their community with visitors from around the world, and earn a little bit of extra money along the way,” said Josh Meltzer, head of northeast public policy for Airbnb. “From the Jersey Shore to Jersey City, Airbnb hosts are ambassadors to the Garden State and we are grateful they have embraced home sharing as a way to welcome thousands of visitors.”

New Jersey’s top five cities by number of guest arrivals:

Jersey City: $11.35 million through 53,828 guest arrivals
Union City: $4.3 million through 22,592 guest arrivals
Ocean City: $2.7 million through 15,403 guest arrivals
Weehawken: $3.2 million through 14,166 guest arrivals
Atlantic City: $1.4 million through 11,244 guest arrivals

Read More: See how much NJ residents earned through Airbnb | http://nj1015.com/see-how-much-nj-residents-earned-through-airbnb/?trackback=tsmclip

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Airbnb sees growth in the state: N.J. hosts earned over $50M in 2016

Ridgewood Realestate

By Andrew Sheldon, February 17, 2017 at 12:39 PM

It sure sounds as though it might pay to rent out that extra bedroom.

Airbnb announced that New Jersey’s 6,100 active hosts earned over $50 million dollars in supplemental income in 2016 by welcoming approximately 257,000 visitors to the Garden State. This figure represents a 100 percent year-over-year increase in inbound guest arrivals, according to the company.

The company says a typical host in New Jersey earns $6,200 annually. The typical listing is occupied 44 nights per year and the average length of stay is 4.2 nights.

http://www.njbiz.com/article/20170217/NJBIZ01/170219828/airbnb-sees-growth-in-the-state-nj-hosts-earned-over-50m-in-2016