Paying Taxes on AirBnb income? (USA)

[Sorath0]

Hi Guys,

I wasnt sure how this works and I am a new host. I recently started working with Airbnb and put my listing up. I have had tremendous response and am booked up for 14 days straight. What I am not sure about is how am I suppose to pay taxes on this?

I have a rented apartment which I put up for just 14 days, I read somewhere that I wont be taxed for that. is that true? Any help would be really appreciated! 

Thanks!!

[Lawrene0]

@Sorath0, do you mean income tax or occupancy tax? 

[Sorath0]

I don't think i have to pay occupancy tax. But yes i definately mean income tax.

[Cynthia-and-Chris1]

Technically, you are supposed to report ALL your income to the government and pay income taxes on it.  BUT if you make under a certain amount, you may not receive a 1099 at the end of the year.  Best to consult your tax professional and not rely on message board answers.

[Annette33]

Yes, you are supposed to pay income tax to the IRS for rental income, as soon as it is over 14 or 20 days a year. (don't quote me on that). if I remember correctly, Airbn will send you a 1099 once you make over 20k a year from rentals through them. Making less doesn't absolve you in the eyes of the IRS. We all signed a W9 form with Airbnb when we signed up, so the IRS might be aware of your activities, so I would file. But make sure you subtract your expenses from your gross income. IRS has a special form for rentals, forgot the number right now, google it. You are running a business now, and it's a great idea to be aware of all the obligations. 

Most likely you would also be liable to pay occupancy taxes, depends on your ocall laws and if Airbnb perhaps already collects that tax  on your behalf, as they do in some communities.Up to you to find out. Good luck!

[Mechelle1]

Airbn will send you a 1099 once you make over 20k a year  Does that include other income? I get my retirement money from teaching. Together they would be more than that amount???? Mechelle 

[Stella198]

Last year I made over $20,000 with Airbnb but they didn’t send me a 1099.  When I called them they only send 1099 forms to hosts or managers of multiple listings earning far more than I earned.  They still report the earnings to the IRS even if they don’t send a 1099 so you are supposed to declare the income (less expenses) and pay taxes.

[Stacie25]

I believe it is at/above $20k AND 200 separate transactions that the IRS requires a 1099 be issued. 

[Denis40]

It is my understanding that for casual rentals under 15 days per year the value of your rental income is not taxed as Federal income or in some states.

[Karen-and-Will0]

@Sorath0:  The other posters have provided some great info here however you may also benefit from suppot of other hosts your area, which I assume is San Diego.  It appears SD has a page and a facebook group.  You can find more info about them at this link:

https://community.airbnb.com/t5/San-Diego/ct-p/San-Diego

[Choling0]

Hello,

This is my second month as a host.  I have a question regarding occupancy tax.  Where do I setup the occupancy fees and taxes to calculate automatically?

I'm hosting in Grover Beach, California.  The occupancy fee is 10% and state fee is 1%.  The city requires that I pay monthly base on income.

I would appreciate any help and suggestions.

Thank you

Choling

[Mechelle1]

Cloling

Here is the responses that I got from others. I am still checking into it. From what I gather at this point, you must get a tax ID number and make sure you file if you host more than 14 days a year. Mechelle

Re: Paying Taxes on AirBnb income? (USA) (Airbnb Community Subscription Update)

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Re: Paying Taxes on AirBnb income? (USA)

Yes, you are supposed to pay income tax to the IRS for rental income, as soon as it is over 14 or 20 days a year. (don't quote me on that). if I remember correctly, Airbn will send you a 1099 once you make over 20k a year from rentals through them. Making less doesn't absolve you in the eyes of the IRS. We all signed a W9 form with Airbnb when we signed up, so the IRS might be aware of your activities, so I would file. But make sure you subtract your expenses from your gross income. IRS has a special form for rentals, forgot the number right now, google it. You are running a business now, and it's a great idea to be aware of all the obligations. 

Most likely you would also be liable to pay occupancy taxes, depends on your ocall laws and if Airbnb perhaps already collects that tax  on your behalf, as they do in some communities.Up to you to find out. Good luck!

Re: Paying Taxes on AirBnb income? (USA)

It is my understanding that for casual rentals under 15 days per year the value of your rental income is not taxed as Federal income or in some states.

Hi Mechelle,

Karen (Level 3) posted a new reply in New Hosts on 10-03-2016 07:00 PM :

Re: Paying Taxes on AirBnb income? (USA)

@Sorath:  The other posters have provided some great info here however you may also benefit from suppot of other hosts your area, which I assume is San Diego.  It appears SD has a page and a facebook group.  You can find more info about them at this link

https://community.airbnb.com/t5/San-Diego/ct-p/San-Diego

On Mon, Oct 3, 2016 at 9:00 PM, Airbnb Community Centre <
community-support@airbnb.com> wrote:

g> Hi Mechelle,
>
> Karen (Level 3) posted a new reply in New Hosts
> <https://community.airbnb.com/t5/New-Hosts/bd-p/new-host> on 10-03-2016
> 07:00 PM :
>
> ------------------------------
>
> Re: Paying Taxes on AirBnb income? (USA)
> <https://community.airbnb.com/t5/New-Hosts/Paying-Taxes-on-AirBnb-income-USA/m-p/220001#M20724>
>
> @Sorath0
> <https://community.airbnb.com/t5/user/viewprofilepage/user-id/108465>:
> The other posters have provided some great info here however you may also
> benefit from suppot of other hosts your area, which I assume is San Diego.
> It appears SD has a page and a facebook group.  You can find more info
> about them at this link:

> https://community.airbnb.com/t5/San-Diego/ct-p/San-Diego

[Sohun-Simon0]

Can anyone introduce a CPA who understands Airbnb income tax well

[Carol181]

I am in the exact same situation.  I began in November, 2016, by the end of the year I had 5 days of guests.  At some point, I contacted my accountant, he told me, by the end of February and as soon as you receive the 1099 from AIRBNB, send the documents to him.

When a 1099 was not arriving, I telephoned AIRBNB, the response was they dont send a 1099 when it is as few as five days and only when it is over 14 days (or some variation of).  At this response, they also sent to me some resource websites, whereby, I learned about the "14 day Rule".  It appears I do not have to claim the 5 days I rented via AIRBNB for 2016.  I am also not able to claim any deductions for expenses as well.

However, I did learn and still waiting for advice from my Accountant, in the following year, in this case, 2017, I can claim the expenses I incurred in 2016 for start up.

Thats all I know Folks!

[Annette33]

hi @Carol181 , I believe  Airbnb only sends 1099s when the income is above  20k. But for your 2017 taxes, if you stay under 20k, you  can always see in your transaction folders how much $$ you made through Airbnb. Even though I didn't get a 1099 for 2016, as I was under 20k, I am declaring my Airbnb income , and of course I am listing all my expenses, which lowers the income. 

Happy hosting!

PS : I know the villages... lived in Ocala, and also had a house on Lake Weir, just up the road from you.

cheers,

annette