Tim and Anna are a couple who have been married for 20 years. In 2010, they spent about $300,000 to buy a three-bedroom house near the beach as their own home, but in early 2021, they bought a new house to live in. So, they made their old home an Airbnb. Despite good views, they managed to rent their house for only 180 days during the pandemic in 2021 and earned $55,000. Here are some of the businesses they have planned for the Airbnb house.

• They made renovations and improvements to the house, including about $3,000 to paint the walls; $4000 for new flooring; The design cost of the house was $3,000; The purchase of furniture and decorations for the interior of the house cost about $5,000; Heating system upgrades cost about $5,000. They spent about $20,000 total on renovating and improving the house.
• Airbnb's cleaning costs for that year were approximately $10,000, including cleaning rooms and changing sheets
• As the new Airbnb host, they spent about $1,000 to promote the beachfront property
• Water, Electricity, Gas, and Wi-Fi bills are approximately $1500 during the lease period. During the rental period, Tim and Anna have been living in the new house. The Water, Electricity, Gas, and Wi-Fi fee of their new house is about $2500.

They want to deduct all the Water, Electricity, Gas, and Wi-Fi fees of their new house from Airbnb. Because they think that they are at home on the Internet to deal with Airbnb room booking and other situations, and processing Airbnb transactions is not limited to a single room.

Tim and Anna want to know how these expenses should be deducted and whether all of the actions are ethical.

Answer rating: 100% (QA)

Tim and Anna are looking for answers to their five questions below 1 Should we deduct the total amount of utility expenses No because utilities do not ... View the full answer