Denver taxes

[Emily66]

Does anyone know what you need to do as a host to make sure you're charging all taxes as well as paying all taxes needed? 

don't want to end up owing the IRS all my money come April 2017.

Thank you!

[Molly16]

At the end of the year, AirBNB sends you special tax form to submit when you do your taxes.  It's an extra earnings statement and they just take a percentage of it based on your tax bracket.  Of every reservation, I put 7% away (the tax rate here on Oahu) into an account so that at the end of the year, I can pay the taxes without it getting deducted from my return.  You can apply for a General Excise Tax license, however it's not mandatory.

In addition to putting money aside for it, you can also claim the room your renting as a home business.  If you calculate the percentage of the space being rented from your entire home, you can claim that percentage of your utilities/rent/mortgage as business expenses and it gets deducted.

[Jean-And-Tom0]

Hi

I am in Anaheim and I am not afraid of much ,but the Feds scare me bad.

I love hosting,

but Anaheim is trying to make it illegal to rent your house short term.

I just rent my room "Quiet Room Near the Fun Zone"

but I hope saving 10percent covers my taxes if they go after us.

[Carol60]

Like Emily, I would like to know how Denver hosts are collecting the new 10.75% occupancy tax that we're required to collect after we get a license. Are you including it in your listing price or collecting it from guests upon arrival? Also, has anyone gotten a license yet? I understand we can do it online.

Thanks.

[Sarah224]

I see that you are discussing a license. Are we required to have a license?  What kind?  I thought I received info several months ago about AirBnB collecting and submitting our taxes, is this lodging taxes? Are we required to pay other taxes?  I thought I read somewhere that you have to report the income if it is over a certain amount??  Anybody know?

[Mimi18]

Licensing depends on your city/state - we are talking Denver here. You should at least be claiming your AirBNB earnings as income in your personal taxes, not sure if there are any additional hotel/business taxes you have to worry about where you live.

[Susan386]

I have an Air bnb in Denver and finally became licenced. I would like to know where I post my licence # and how to collect taxes without surprising my guests. One of the things I loved about Air bnb was no money exchanged hands,so much for that. Susan

[Carly18]

Hi there, did you ever find any more info about this?  I've just receieved a "Notice of Lodger's Tax Delinquency" from the City of Denver.  I didn't even get a first notice - just a notice that I'm delinquent on paying the Lodgers Tax.  How was I supposed to pay it to begin with?  Also, how have you been collecting the tax from guests?  Thank you so much!

[ZoZo1]

Bummed this has gotten so complicated.

I got an email from City of Denver saying, in summary, that AirBnb collects the State of Colorado taxes on our (the hosts) behalf, but they do NOT collect the City of Denver 10.75% Taxes.  As a host you need to charge, collect and remit Denver taxes from your guests.

I think you can select your payment frequency with the city... either monthly or quarterly.

Yes, you can pay it online.

I think it is solveable, stay diligent, ask for a waiver of the fees. The worst they can say is no.

Good Luck!

[Carly18]

Thnks so much for the reply!  If you don't mind me asking, how do you personally choose to collect the 10.75 tax?  

[Krista10]

In Denver it must be collected through the resolution center. Denver doesn't allow it to be part of the nightly rate. They require the 10.75% to be a separate charge so the guest knows exactly what they are paying in taxes.  

[Tyler29]

ZoZo, I just got off the phone with Denver eBiz and they said the same thing.  10.75% is a ton and eats in to almost all of my profits above cleaning, mortgage, and bills (about $600 per month).  Have you figured out a clever way to collect taxes where you don't just jack up the nightly rate?  Thanks!

[Krista10]

You are not allowed to collect as part of the nightly rate.  It must be collected separately through the resolution center per Denver rules.  

[Tyler29]

Right but since I allow instant bookings I feel like it would be a huge turn off for guests to get hit up for more money every time they book with me.  I spoke with a fellow host in Nashville and he said he just tries to make his rates such that he can still make a profit with the tax.  Tough to do.

[Carly18]

Tyler - right... It is a big turn off.  The way I have been handling it is by stating in my description (upfornt, first thing, and in capital letters) that the nightly price does not refelct the 10.75% lodgers tax that Denver requires all hosts to collect.  I state in the description that after you book, you will receive a request to alter the reservation that will reflect the tax.  It adds a whole extra step in the booking process and it's really annoying - some people don't believe me - some poeple do.  But mostly, in the last month or so (when I started implementing this), people have been pretty cool about it.  I have gone back and forth with Airbnb on this a bunch but they really don't want to get involved with local tax issues.  Hopefully, Denver will come to their senses because this is really silly.    It absolutely should be a line item along with the Airbnb service fees and cleaning fees!!