I spoke to someone at Airbnb today and I thought she said they send 1099 forms only if you earn more than $200,000. That seems pretty bizarre so maybe it's $20,000. In any case I started hosting in August 2016 and made a little under $17,000 in 5 months. Airbnb told me they don't report it to the IRS. However, I'm reluctant to not report it, and it seems I can deduct a lot of expenses so it might not be so bad. I can deduct part of my mortgage, my homeowner insurance, my taxes, my utilities including internet & Dish network, part of my gardener (because guests have their own entrance and garden) and all cleaning fees. Plus cost of linens, soap, shampoo, wine & food I leave for guests, orchids I buy for the apartment, keys, lockbox, and any repairs or maintenance. Also I can depreciate furniture bought specially (rugs, daybed, sleeper sofa, appliances) Because the space I rent is completely self-contained I think I'll be able to deduct close to 1/3 of what I received. I will also have to pay California state tax. Starting last August Airbnb began collecting occupancy taxes from guests and paying it in to the City of Los Angeles. Hosts are not involved. I am glad they are doing this because local hotels were trying to shut us down, and I believe we are in a stronger position now the city is collecting occupancy taxes, and it doesn't cost hosts anything.