IRS EIN number distinct from AirBNBs and how to not be double taxed?

Elizabeth2601
Level 1
Knoxville, TN

IRS EIN number distinct from AirBNBs and how to not be double taxed?

My county, city, and state want an EIN for the AirBNB hwich means being double taxed by federal and possibly state level.  Doesn't AirBNB already subtract Fed and State taxes?  If not then this makes sense, if so, then how do you all avoid being double taxed.

Anyone living in TN know how to best set up a business for the City and Knox County Temporary Housing rules?

 

 

4 Replies 4
Gwen386
Level 10
Lusby, MD

AirBnB does not deduct federal taxes from your payout. However, depending on your state, state taxes are paid by the guest and submitted to your state comptroller. In my case it’s Maryland. 

Did you have to obtain a federal and state business license as well?

 

Ted307
Level 10
Prescott, AZ

@Elizabeth2601 

I live i Arizona. Our state has an agreement with AirBnB to withhold the state & local occupancy taxes, but we pay state and federal income taxes based on our earnings. I have an accountant deal with it. If I were you, I would ask this question to an accountant in your state who is experienced with short-term rental income taxes.

Ted & Chris

Great info - than you.