@Mary-Y-Angel0 You need to discuss this with an accountant in order to understand what the 1099 is going to show. What I understand is that the 1099 will show ALL of the earnings of a property/account, which will include the taxes and service fees charged and kept by AirBnB.
I keep a running spreadsheet of my rentals. I enter the amount that I am paid, the amount that I am charged (the 3%), the amount of taxes collected by AirBnB and the amount of the service fee that the guest pays to AirBnB. I also keep a tally of the rentals that were refunded any amount and those that booked and subsequently cancelled, even if I never saw a dime. According to my accountant, ANY monies paid that are relevant to my property, even if refunded or not paid to me will show on the 1099.
At the end of the year, each of the line items that I tally should be the amount on the 1099. I submit my records AND the 1099 to my accountant. The amounts that were never paid to me like the taxes and OTA service fees are then shown as expenses on the schedule E. I had all of this set up by my CPA 20+ years ago, and it has kept me tax compliant.
