Tax

[Matthew1982]

I’m told by air BnB that the tax they charge covers my taxes at the end of the year ? Is this true . What tax will be owed at end of year or is it all covered by air BnB accupancy tax 

[Mike-And-Jane0]

@Matthew1982 What taxes are you talking about? If it is a personal income tax then clearly Airbnb does not cover it. If they collect a tourist tax then they should be covering that for you (assuming they haven't paid it to you) but you may need to still supply a return to the authorities.

[Nash-Cottages-LLC0]

@Matthew1982 I'm sure a call to your local and provincial tax offices will give you some insight into your situation. We don't live in Canada, otherwise, we'd happily provide you better advice.

What we can share is our experience regarding the evolution of how we handle our state hotel and occupancy taxes since we began hosting. Initially, we were responsible for collecting this fee ourselves, followed by filing and remitting these taxes on a monthly basis.

Over time, due to increasing political pressure, Airbnb negotiated with our state (and local area) to undertake the collection of taxes on behalf of hosts, streamlining that specific process significantly for us. This initiative also empowered our local area, Nashville, to enforce compliance among hosts who, unlike us and many others, were not fulfilling their tax obligations, disregarding local occupancy laws, or lacked proper occupancy permits. Perhaps a similar process is underway in your area. Therefore, I strongly recommend reaching out to the appropriate government agencies for clarification.