Coronavirus government benefits

[Emily1159]

Very disappointed in Airbnb - they are trying to tell us (hosts) that the tax relief package has something in it for us. It does not!  I have read the legislation details for my work as a tax accountant.  There is no relief for rental property owners, people whose primary or supplemental income comes from their vacation rentals, etc.

The ONLY relief, and that is questionable because it is shown as a 'deferment' not a gift, is to folks who file a Schedule C treating their rental income as self-employment, or have 'employees', which most of us do not.  You could go through the tedious process of applying for a disaster loan, but that is not a replacement of lost income, and it must be paid back eventually.  If you've heard about the govt forgiving those loans, well yes, - if you keep all of your 'employees' on the payroll during this time. 

Again, who of us has employees?  Airbnb, go back to Congress and lobby for our losses! Marriott and Hilton-type of lodging businesses and the airlines are getting all of it and we're getting zip. What a disgrace!

[Dale664]

This is crazy.  I thought us hosts were going to get a tax credit or forgivable loan.  Airbnb canceled our Strict non-refundable polices in hopes of getting a governmental bailout.  Failed!

[Juan63]

@Dale664 forgivable loan? Who gave you that idea?

[Dale664]

Airbnb was lobbying for a forgivable loan

[Patty161]

Thank you for your info on government bailout money available (or not available most likely) to Air BnB Hosts. Does anyone have more information on government bailout money available for Air BnB Hosts?

I was hoping for a buffer against future cancellations.  I have a summer rental that is fully booked for the 2020 season, but my guests are already requesting to cancel and wanting refunds (I have a strict cancellation policy).  I want to be reasonable but at the same time I really need that income to pay the mortgage.  If I knew the government was helping out I would be more inclined to relax my cancellation policy and give my guests peace of mind.  Any help or additional information from the host community would be greatly appreciated!!

[Emily1159]

@Patty161 Read the Brian Chesky's announcement from the other day or watch the video, for some guidance. 

[Jeffrey-and-Sandra0 · Accepted solution]

Airbnb should clarify options and opportunities. A 15-minute poor-me presentation doesn't help. We need detailed information.

I am speaking with my bank about the SBA loans for loss of income regardless of whether or not I have employees. Not sure if we'll qualify but it appears we may.

Also, reference was made to hosts that rely on Airbnb revenues for personal income qualifying for unemployment insurance. We are looking into that as well.

It's important to research every option with the decision-makers that control the option. It's unwise to rely on interpretations based on the theoretical.

[Al88]

@Emily1159do you know where we could file for that disaster loan you mentioned [website address] for those that file a Schedule C? And do you happen to know if we could file for unemployment? Any info from you or anyone that knows is greatly appreciated!  Thanks

[Emily1159]

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[Emily1159]

Unemployment is available to those who file and pay SELF EMPLOYMENT TAX, aka FICA, and report their income as a BUSINESS.  If one reports their Airbnb revenue on the RENTAL Property part of the tax return, that is not subject to SE tax, rentals fall under different taxation rules by the IRS with pros and cons (mostly pros). Airbnb hosts do both.  Technically, it depends on the situation and your activities and intentions with the rental property, I won't go into that here.

If you do the latter method, under any normal program of Unemployment Insurance, you do not qualify.  Will the feds make an exception? Or your state?  Go check your state's website and send them an inquiry, but I doubt it.  I am a tax accountant by trade. 

[Emily1159]

@Al88  HI, see my comments today.  I think the best outcome will be applying through Airbnb for one of the loans or grants they are offering, unless you have been treating this, or intend to treat it in the future for tax purposes, as a self-employed activity. 

[Emily1159]

@Al88  OH, I read more carefully.  In your case, your state unemployment is the place to start. Most likely they will administer the additional FEDERAL unemployment benefits of $600/week once you are approved for the state benefit.  Also, even if it takes a while for them to organize how they're doing it, the federal payments are retroactive, I think to March 15th. 

[Al88]

Thanks, that is what I thought. On another topic, do you happen to know if someone that is collecting a tiny social security payment [only worked 11 years] but still has been working to make ends meet can apply for unemployment? Thank you so much. It is impossible to get thru to the government offices.

[Al88]

Where did you read that Airbnb is offering loans/grants, or do you mean the ones in the government bill? Thanks!

[Heather1051]

The SBA disaster relief loan advance seems to include loss of rental income. My question is, there's a line for "cost of goods sold" (which, if my research is correct, also means cost of services). Does this mean the cost of the rent or mortgage paid and/or the cost of the property manager/house keeper?