Are "upcoming payouts" taxable?

[Marc-Nicolàs0]

Hello,

During 2021 I have had 10 guests, however, all the earnings are still on the Airbnb platform as I have not paid myself during 2021. All the earnings are still in the "upcoming payout" section.

Do I need to consider these earnings in my tax filing for 2021? or because those are still under "airbnb" hands, I'm exempt to include them?

Thank you

[Elaine701]

@Marc-Nicolàs0 

Has Airbnb not paid you for bookings in 2021? Why? 

I can't offer advice on tax law in your country or state. You should speak to a tax advisor.

But if you are referring to bookings fulfilled in 2021, then I would fully expect that income to be taxable, even if Airbnb haven't paid it yet (and you need to find out why they haven't paid it yet, before it all gets lost in the noise). 

For future bookings that have yet to be fulfilled ("upcoming payouts"), I would expect to be taxed in the year/quarter that the income is realised.

This seems self explanatory, but again, I'd consult a tax advisor. 

[Marc-Nicolàs0]

I mean that I have decided not to be paid until I reach 50k$ in my airbnb account.

So now there's a balance of 10k$ that I could ask Airbnb to "pay me" and wire to me account, but i'm not doing so. My question is, do I need to pay taxes for that balance in the "airbnb" platform?

Thank you

Marc

[Mike-And-Jane0]

@Marc-Nicolàs0 In the UK it would depend on the type of accounting you use. We can choose to use cash accounting (rather than accrued accounting) so, for us, it would depend on when the money was received. That said even HMRC might object to a 12 month delay between hosting and receiving the cash!