Airbnb hosting in Truckee CA

[Manish56]

Hi -

We recently put our home in Truckee CA on Airbnb. Our property management company has asked us to create business entity (Sole Proprietorship) in order to collect the transient occupancy taxes. Apparently they need an EIN to register with AirBnb. I was wondering if anyone else has had to also do the same and if it was a requirement from Airbnb or the town of Truckee?

Thanks,

M

[Michael6968]

Neither are required.  If you operate as a sole proprietor, you use you Tax ID number (Your social security number).  If you want to set up a partnership or a corporation to run your business, then you must obtain a Tax ID (EIN) from the IRS.  It's a sim pie process.  

AirBnB collects the tax and includes it in your payout.  You receive a quarterly tax form from the town which you fill out and submit the collected tax to the town.  It's just a pass through. On you federal and state taxes it becomes an expense.