Taxes

[Michael5901]

Hi. I am new to Hosting. In Ontario, Canada.

Does anyone have suggestions on how to claim Airbnb income? It's a family cottage. Both my parents are retired. So if they were to claim, they would get hit with high taxes because of their low pensions. If I claim, then I pay the taxes, but I don't get full use of the earnings as they are split for cottage expenses.

I have heard of opening a corporation so that I can claim under that and it's just a number. Not sure how that works.

Any help is greatly appreciated.

Thank you,

Mike

[M199 · Accepted solution]

@Michael5901 

In Ontario and Canada rentals are not regular income but rather specifically Rental Income.

You should like consult with a professional accountant.  Also, remember that of your change to a rental, it will quite likely impact your capital gains status and various other tax legislations.

Dig deep to get all the knowledge you can.  Also, continue to follow this CC for very real information.

[M199]

@Michael5901

😖...  likely consult. ..

[Pamela989]

Hello I live in Tampa, FL and I have my first guests, it is so exciting but I am confused on the tax issue. I understand  that AirBnB will access a 13% tax on the guests, but are there any other taxes and fees collected  and am I responsible for collecting any type of taxes or fees???

[Josiah0]

No.  Usually, STR platforms like Airbnb have a memorandum of understanding with state, regional, county, and local authorities to collect and remit occupancy taxes (in some cases fees) from the guests at the time of booking.  These taxes are aggregated and distributed accordingly without our involvement.

However, as a short-term rental business owner, if you accept any bookings 'offline,' you are required to collect all applicable taxes from the guest and remit quarterly to you state and/or local tax collection authority.

You are still responsible for reporting all your rental income when you file your taxes.  Airbnb sends a 1099-K, and you are still responsible for reporting additional rental income you earned offline.

Obviously, consult a tax professional, but in my experience, they are extremely inept when it comes to rental/royalty income (Schedule E).

[Mary-Ann94]

You seem knowledgeable in this regard Josiah.  I understood that there were some tax changes this year such that the annual earnings rate that was reported by AirBnb to the IRS dropped substantially (this was what AirBnb said).  As I exceeded that threshold this year, I should have rec'd a 1099-K, but, haven't rec'd it or seen it on their website.  Maybe I'm confused about the tax changes relative to reporting rental income?

[Deva0]

I am looking for a tax preparer who has knowledge in regards to Airbnb income. Do you have any ideas how to find one? The only one I found is in New York. I need one in Pennsylvania.

[Helen3]

Have you tried asking a local host group @Deva0 

[Paschal4]

hello I  live in Smyrna Ga, airbnb takes some sort of taxes, do I need to still pay taxes ? 

[Cooper17]

I am confused.  We have an Airbnb in Virginia.  Do I use a Schedule C or E to report income?

[Maiya8]

Hi, state Florida when deadline to pay City tax or where I have to file Sale tax?

[Abigail216]

Hello! I am a newbie host, started accepting guests just last month. The thing is, my rental property is actually outside of the US. However, I am a US citizen. My question is, how do you file for your taxes? Is there anybody here having the same issue? Any suggestions/inputs are greatly appreciated.

[Dori787]

I'm about to start renting too and in the same bout. Did you find out any information?

[Patricia3574]

Hello , did you get any information, I just starting also the property is outside of USA but I lived here I just hosting my father Apt, please let me know if you got any information

[Donna1180]

I am a newbie here myself can anyone who do Airbnb in New York know if you have to apply for sales tax license.