Taxes

[Jim-And-Jodie0]

I started our rental in 2015. I will say that I did not understand everything that needed to be done with paying TOT taxes to the county. I learned the hard way and had to pay penalties. 

I just found out this last April 2023 that Airbnb was sending in Taxes to our County for my rentals. Problem is, I was paying taxes quarterly also. I learned they started that in 2018. 

Now The County and my tax lady are trying to unscramble this mess. But the issue is when Airbnb submits taxes to the county it is a lump sum. There is not identification on what rentals they go to. The county wants proof that airbnb turned in taxes for my property. 

I have tried calling customer service. I get the nice ones that answer the phone that answer issues with listings that kind of thing. 

They transferred my case to another department, and all I got back was a EMAIL sharing links. That isn't what I need, I know how to get to links. I need some proof showing what they sent in for my property. 

All I get now is, we have talked to you and the case is closed. 

WHY can't I talk to a live human! 

I will not be able to be reimbursed if I cannot supply proof to the county.

Frustrated to say the least. 

Will look into other places to take my business. 

I admit I am not a good bookkeeper. I screwed up. And we, county and me wonder how many others are double paying taxes. 

[Joan2709 · Accepted solution]

Hi @Jim-And-Jodie0 

I suspect we will be seeing this more and more with local jurisdictions, as Airbnb currently pays taxes in one lump sum and does not breakdown the taxes by listing (it would  be almost impossible to do so). This tax collection situation is going to become a huge issue. More and more cities and counties are adding restrictions and registration requirements. Some jurisdictions are adding requirements to prove taxes will be paid by Airbnb before you can even register with them and get a license. As you have found out, it's almost impossible to do that.

Perhaps one of the moderators @Bhumika , @Paula ) can forward this issue to the appropriate team at Airbnb? Not only for @Jim-And-Jodie0 's benefit, but to address the larger issue that is looming for both Airbnb and Hosts. I'm sure this will continue to "snowball." I do believe it is in everyone's best interest to provide clear direction for Hosts on how to supply this "proof" to local taxing agencies that require it. What form that will be in is unclear at this point. Seems like Airbnb probably has a Team solely dedicated to this and most likely will require communication between Airbnb and the local taxing authority involved (not an easy task).

For now, might I suggest you dowload all your CSV files in transaction history and start keeping a spreadsheet for every reservation that breaks down the Occupancy Taxes collected. This will enable you to have a clear record of all the taxes (sales tax and occupancy taxes) and that they were paid for each reservation to Airbnb.  I would also continue to communicate with your local taxing authority regarding this and any changes to requirements.

[Jim-And-Jodie0]

Thank you, Joan,

Yes, it seems to be confusing to many. Even at County level. 

Airbnb feels it is proof going off of Transactions but I am told on my end from Tax person, that is not proof they sent in the money. 

I appreciate your feed back! 

[Paula]

Hello @Joan2709 and @Jim-And-Jodie0, thank you for tagging us.

I am forwarding Jim's case to the appropriate team for review. Once they have assessed the situation, they will directly contact @Jim-And-Jodie0 with further guidelines.

Thank you.

[Jim-And-Jodie0]

Hi Joan and @Paula , 

Thank you both for your help in this matter. 

@Paula, I am assuming you sent my issue on to the department it needed to go. I had a really nice guy reach out to me. To tell the truth I was shocked. I was at the point of letting it go, beings you can't get past customer service that only wants to send out links. 

While talking with him, he told me were not supposed to be using Transaction History to figure out taxes. I mentioned to him that is what customer service says to use when you call in and that there is no longer the Earnings Summary to use. He looked and couldn't find it either.

I've never needed a CSV file converter. Now I will need to purchase that in order to go forward on figuring out taxes. I don't like paperwork, confuses me. 😉 The Earnings Summary was so much easier than a spreadsheet. 

Again, you both helped me a lot and much appreciated!

Jodie 

[Joan2709]

@Jim-And-Jodie0 

If you are familiar with Excel (Microsoft Office Spreadsheet), you can save the CSV as an Excel file without having to buy a converter software. It's kinda a pain as you have to manipulate the columns and rows, but it works. It does help if you are familiar with Excel. Some Hosts have had their accountants give them a template in Excel and they just plug the information in for each reservation.

Hope this all gets worked out for you. If you find out what "proof" is acceptable to your County, please let us know here. It will surely help other Hosts in the same predicament. 

[Jim-And-Jodie0]

I have never done a spreadsheet in my life. Looks as though I will need to learn. 

Paula sent the info on to a really patient and kind person at Airbnb. I do not know what department he was in. He said they aren't allowed to talk via the phone only email. 

He sent me a copy of taxes sent in to the County. From when they started sending them in October 2018 to the date somehow it dawned on me to make some calls. I love being a host but not the booking part as one can see. 

Others that I tried talking to said it wasn't possible to get this information. But he did it 🙂 

I usually don't complain publicly but am glad I did this time. I was at my wits ends. 

I appreciate you knowing whom to tag very much. 

This person I emailed with didn't tell me this, but others have told me basically that I am the only one to do this. Which I find odd beings my neighbor was doing the same thing; he is new to renting. Glad my mistake helped him not have to go through it. And hopefully others that see my post. 

I will check out the Microsoft Office Spreadsheet. 

Thank you, Joan. You have helped me out tremendously, you have no idea! 

Enjoy your day!

[Joan2709]

@Jim-And-Jodie0 

Thanks for letting us know what happened here as it will definitely help other Hosts 👍 👏. Thank you to @Paula for sending your info to the correct Team at Airbnb!

I feel your pain about spreadsheets 😁. Perhaps your accountant can create a template for you, so all you have to do is plug in the numbers on each reservation from now on?

[Pat271]

@Jim-And-Jodie0 

I don’t know if this can be considered “proof”, but in the email confirmation sent when a guest books, the taxes remitted by Airbnb on my behalf are explained. This is what it says.

Your guest paid $81.24 in Occupancy Taxes. Airbnb remits these taxes on your behalf.

Knowing this, using the browser version of Airbnb, if you go to Earnings/Show All Paid and put in a filter for the property and dates you want, and then select Get Report at the bottom of the page, a spreadsheet will be created. If you look at that, the “Occupancy Taxes” column in that spreadsheet will show the taxes remitted by Airbnb, for each guest. There may be another entry row for the guest as well that contains the taxes that you configured using Professional Tools to be remitted and sent to you, if any.

[Jim-And-Jodie0]

Thank you Pat, 

I always thought what the spread sheet says is proof. 

But my tax person says, beings the money is sent in, a lump sum. It doesn't show what property it goes too. 

Appreciate your thoughts! 

Jodie

[Joan2709]

@Jim-And-Jodie0 

You are correct that Airbnb sends a lump sum to each jurisdiction and doesn't break it down by listing. Not sure there is a way around that at the moment. I think the best you can do for now is keep your own records/spreadsheet and breakdown the Occupancy Taxes for each reservation. 

It will be up to Airbnb and your local taxing authority to work out "proof", but at least you will have your own records and the Airbnb CSV transaction files.  I suggest you might want to go into your listing now all the way back to 2015 when you started and get those files from Airbnb on your computer in case you need them. Then start your spreadsheet going forward starting Jan 1, 2024 and track every reservation and breakdown the taxes from now on.

[Jim-And-Jodie0]

One can go to Transactions and pull the information by putting in the dates. It will tell you the amount you made within that period of time. And it does tell you how much in taxes. 

I am told that is not proof enough. 

I suppose I best go sit with my tax lady and show her what I am seeing. 

(Collected from the guest and remitted to taxing authorities on your behalf.)

That to her is not proof

Her thoughts, do they truly send in that amount?

I will call the County again when they come in. 

Appreciate all your thoughts! 

[Pat271]

@Jim-And-Jodie0  The spreadsheet shows what property and what guest the tax is correlated with, and all of the numbers should add up to the lump sum that is sent in. What other proof do they require? Surely this would be at least good for supplemental proof.

If it’s true that Airbnb doesn’t send in the taxes per-property, I suppose it wouldn’t be too hard for them to implement, since they already have the info.

[Joan2709]

That is a great idea @Pat271 !  I guess you can also save each reservation detail as a PDF as well? The only issue there is the taxes are all still lumped under "Occupancy Taxes" 😠

I guess you can do both? Keep the reservation details as a PDF and then update your spreadsheet showing the breakdown for each reservation. The problem with the Airbnb transaction files is they still need to be converted to Excel format (or other spreadsheet software) and still only show a total Occupancy Tax (not broken down by sales tax state/county/city and occupancy taxes). 

[Jim-And-Jodie0]

Thank you