Hi there,
You're correct that Airbnb automatically collects and remits certain taxes on behalf of hosts in Rhode Island. Specifically, Airbnb handles the collection of the state sales tax, local hotel tax, and the Rhode Island Tourism Tax for short-term rentals. These taxes are automatically included in the guest’s booking total and then paid directly to the state by Airbnb, so you don't have to worry about those specific taxes.
However, there are still a few things you might need to handle on your own:
Income Taxes: You’re responsible for reporting your rental income on your federal and state income tax returns. Make sure to keep detailed records of your earnings and any deductible expenses related to your rental.
Property Taxes: If you own the property, you’ll need to stay on top of property taxes, which are separate from the occupancy taxes Airbnb collects.
Business Licenses or Permits: Depending on your specific location within Rhode Island, you might need a local business license or permit to operate a short-term rental. Be sure to check with your local government for any specific requirements.
If you're ever unsure, kindly consult with a tax professional who can provide personalized advice based on your situation.
Hope this clears things up for you!
