Tax on airbnb income

Hans-Joachim11
Level 2
Hamburg, Germany

Tax on airbnb income

Hello,

 

It may be clear to everyone, but perhaps not everyone knows, that the income from Airbnb has to be taxed. Airbnb now reports Airbnb income (income less Airbnb costs) to the user's respective tax office. A problem arises here because Airbnb only has a field for the rent and not the additional costs. If you only rent out a room in your apartment privately from time to time, you of course have the option of calculating your profit and deducting your rent including additional costs for the rental period from the rental income and then reporting the actual rental income to the tax office as rental income. Anyone who runs this as a business with several apartments in Germany or abroad can of course do the same. The problem in both cases, however, is that the Airbnb tax office is given a different amount than the amount used to determine the profit and this will presumably lead to huge problems with the tax office for many Airbnb landlords in the future, as this difference will of course be questioned by the tax office. If you now also have rentals abroad, things become even more complicated. Airbnb doesn't seem to care, but it would make the most sense if Airbnb would provide landlords with an input field for the rent and an input field for the additional costs (only the additional costs without Airbnb's costs) when setting their prices. Each user can then enter the effective rent and additional costs (their own pro rata rent, heating costs, electricity costs, etc.) per day or per week there and the values that Airbnb then transmits to the tax office are the effective rental income.

 

Many greetings Joachim

2 Replies 2
Nayibi0
Level 2
Miami, FL

Thanks for the information  @Hans-Joachim11 

regards 

Mike-And-Jane0
Level 10
England, United Kingdom

@Hans-Joachim11 Airbnb reports the income. It is up to hosts to use this figure in their tax returns and then add in their costs elsewhere on the return to determine the net (or taxable) income.

Of course some countries (like England) do not require a tax return for a room in a shared home if the income is less than £7500. I've never seen what Airbnb report but I suspect it is the gross figure prior to Airbnb fees (which need to be added as a cost by the host).