New Airbnb host in Hendersonville, NC

Answered!
David-and-Rebecca0
Level 1
Hendersonville, NC

New Airbnb host in Hendersonville, NC

Anything I should know or any recommendations y’all have as I start a new Airbnb in Hendersonville, NC? Any technical quirks I should know about? I read a thread about the tax being confusing and or wrong in various parts of NC but they seemed like old posts. Anyone still having any tax issues in Hendersonville? Thanks in advance everyone!

1 Best Answer
Lorna170
Level 10
Swannanoa, NC

@David-and-Rebecca0  AirBnB will collect the State and County taxes for North Carolina.  You will have to check to see if they are collecting any secondary taxes for your city or county.  In my case they collect the NC and Buncombe County taxes, and finally began collecting the unincorporated Buncombe County Occupancy Tax.  If my properties were located within the Asheville City boundaries, they would collect those taxes too -- i.e., 4 separate agencies.

 

You will have to have a tax ID number for the State and County Sales and use tax report.  I registered my rental business with its own state EIN.  The forms are available online from NCDOR.  Your local sales and use or occupancy tax forms may be on the Hendersonville or County websites.

 

Realize that NONE of these agencies will receive the taxes as paid under your Tax ID.  AirBnB pays by lump sum, so I file a "no tax due" report monthly, quarterly and annually as required with all of the tax agencies.  AirBnB will NOT give you a statement about the taxes paid -- the csv from the website is sorely lacking, so I keep a simple spreadsheet that shows each rental, the amount of taxes that AirBnB collected from the guest and then I break that total down by agency, i.e., 4.25% to the State, 2.25% to Buncombe County and 6% to the municipality.

 

AirBnB will report via a 1099  the GROSS amount of monies (over $600) collected for your rental property.  So it is important that you keep track of each rental, how much the GUEST was charged, how much the GUEST paid in taxes and how much the GUEST paid in AirBnB fees as well as the 3% that AirBnB charges you for the credit card payment processing.  

 

Keep track of all cancellations and refunds -- those amounts will also be in the 1099 reported total.  

 

To offset your rental income, review IRS form Schedule E (or C) to learn what expenses you can or cannot deduct and keep receipts and records of those expenses.  A simple spreadsheet or diary will do.

 

If you are unsure of how to do all of this, have a consult with a tax accountant who knows rental property rules. 

 

Best wishes!

View Best Answer in original post

2 Replies 2
Helen3
Level 10
Bristol, United Kingdom

Check with your local government to see if there are any STR restrictions in your area. Your accountant will be able to advise on tax issues. 

Lorna170
Level 10
Swannanoa, NC

@David-and-Rebecca0  AirBnB will collect the State and County taxes for North Carolina.  You will have to check to see if they are collecting any secondary taxes for your city or county.  In my case they collect the NC and Buncombe County taxes, and finally began collecting the unincorporated Buncombe County Occupancy Tax.  If my properties were located within the Asheville City boundaries, they would collect those taxes too -- i.e., 4 separate agencies.

 

You will have to have a tax ID number for the State and County Sales and use tax report.  I registered my rental business with its own state EIN.  The forms are available online from NCDOR.  Your local sales and use or occupancy tax forms may be on the Hendersonville or County websites.

 

Realize that NONE of these agencies will receive the taxes as paid under your Tax ID.  AirBnB pays by lump sum, so I file a "no tax due" report monthly, quarterly and annually as required with all of the tax agencies.  AirBnB will NOT give you a statement about the taxes paid -- the csv from the website is sorely lacking, so I keep a simple spreadsheet that shows each rental, the amount of taxes that AirBnB collected from the guest and then I break that total down by agency, i.e., 4.25% to the State, 2.25% to Buncombe County and 6% to the municipality.

 

AirBnB will report via a 1099  the GROSS amount of monies (over $600) collected for your rental property.  So it is important that you keep track of each rental, how much the GUEST was charged, how much the GUEST paid in taxes and how much the GUEST paid in AirBnB fees as well as the 3% that AirBnB charges you for the credit card payment processing.  

 

Keep track of all cancellations and refunds -- those amounts will also be in the 1099 reported total.  

 

To offset your rental income, review IRS form Schedule E (or C) to learn what expenses you can or cannot deduct and keep receipts and records of those expenses.  A simple spreadsheet or diary will do.

 

If you are unsure of how to do all of this, have a consult with a tax accountant who knows rental property rules. 

 

Best wishes!