Renting out a vacation home may seem like a great way to make extra cash. But it can also cost you a great deal of money if you don’t pay your taxes and fail to adhere to state and local licensing regulations regarding vacation properties.
HomeAway, a vacation rental home site for renters and owners, recently launched a free online resource to help owners of vacation properties comply with local taxes and licensing requirements.
The new service, called the HotSpot Tax Center — launched in partnership with HotSpot Tax (soon to be renamed Avalara MyLodgeTax) — also offers the option for owners to pay for automated online tax filing for state and local short-term rental taxes.
The site has a tax-rate lookup tool that allows users to enter a property address to determine the tax rate for each rental transaction, the number of tax returns that need to be filed annually, the minimum number of nights a property must be booked to trigger a tax and information about required registration and licenses.
Vacation homeowners who use HomeAway to rent their property can already have rental taxes automatically added to each transaction. The addition of the tax center allows owners to easily file taxes and pay the jurisdiction on time.
For more information, go to www.homeaway.com or www.hotspottax.com/taxcenter.