Co-host and taxes

[Elizabeth370]

Hi,

I am interested in this cohosting. My question is about the 200 reservations/$20,000 earnings = 1099 rule. As a co-host would each co-host reservation go towards this tally? or are the taxes purely for the primary host? This is important info when taking into account the percentage of co-hosting charges. Thanks! (USA)

[Mustapha2]

I am also looking for an answer to this. Let me know if you got the answer for this. 

Thanks

[Elizabeth370]

i was told that each time you either host or co-host it goes towards that 200 reservations and 20,000 for 1099.

[Anibal11]

Did you ever find the answer to this question Elizabeth? I was told by Airbnb customer service that the cohost reservation does NOT count towards the 200 reservation mark because you are NOT the primary host.

[Rachael26]

Only a property owner/renter as the main host has the 200 reservations counted (and likewise the annual 14 nights of tax-free earnings not counted by the IRS) - so if you are a co-host, only your income will be reported to the tax authorities, but no 1099 issued. If your co-host earnings exceed $20,000 for ONE listing (not your total if you manage more than one) you really should be seeking the assist of an accountant - as it is more than likely that those larger amounts will be individually reported to both State & IRS.

Best Wishes,

Rachael

[Elizabeth370]

I did ask airbnb this question and yes - BOTH - cohost and host will be be "counted" towards botht he 200 reservations and $20,000. If someone knows something differently please let me know. thanks

[AnneMarie12]

I have a follow-up question to your answer.  When you say "income will be reported to tax authorities" for cohost, does this mean that cohost will recieve a W-2?  Is cohost income considered "earned income"?  Income from airbnb on property I own is considered "passive income" and I need to know if as a cohost on property I do not own would be passive or earned.  Thank you!

[Nora36]

Did you ever get an answer to this? My guess would be if anything was issued it would be a 1099 to the co-host from the primary host / owner but I can't find any threads about it. Just added a co-host and want to be sure neither she nor I are caught unawares. Am also going to ping my CPA to see. Airbnb's set-up for Payment Rules seems like it wants to apply one taxpayer ID across the board, which is weird if you have a co-host that is only getting part of the earnings.

[Angie101]

Nora, any word from your CPA? I'm the primary host of my 2 Airbnb listings. My co-host and I split the income 50/50. Once Airbnb pays out to me, I transfer my co-host 50% OUTSIDE of Airbnb (bank transfer).  My co-host's accountant advised him to get a 1099 from me. Since Airbnb paid me out solely, it appears as though I've made all the income, but since I pay my co-host 50%, I don't want to be on the hook for all the taxable income. So does 1099 my co-host make sense?

[Jess162]

Still check with a CPA to be sure, but anyone you are working with on a contractual basis (that you pay $600+ for the year) will need to receive a 1099 misc from you. 

https://www.irs.gov/businesses/small-businesses-self-employed/reporting-payments-to-independent-cont... 

Hope that helps. 

[Linda1738]

I have an extremely urgent situation on my hands. The host who I have been cleaning for bailed out of town. This person had 3 listings. Shut down the one that was on the property she lived at. Still has the other two listed and I am still cleaning them. I helped her pack her house and noticed a letter from the IRS and a letter from the city stating she owed a very large sum of money. She left in a hurry. Im afraid the city is going to come to the property and question me. What should I do?

[Cathy935]

you are just cleaning for the host, not the property owner. why are you still cleaning the other two? do you still getting pay from the host?

[L-J158]

Hi and thank you for reaching out! My name is Matt R. I am a Superhost in Missouri and an Airbnb Community Expert. I'm happy to assist!

AirBnB reports income to the government based off of the taxpayer information that is entered on an account, and the income that is routed through that account. If you did not have your taxpayer information entered on an account that had payouts made on it, then AirBnB would not report any income for you.

That being said, It's your responsibility to determine what, from your total amount earned, if any, to report as taxable income on your tax return.

The full AirBnB Help Article on this topic can be found here: https://www.airbnb.com/help/article/414/when-you-might-receive-a-tax-form-from-airbnb#:~:text=If%20y....

this was how they responded to me today regarding this. 

[Angelique16]

Hi! Thanks for your contribution. I have a question: What about a cohost who gets 75% of the payouts and it's paid directly through the "rules" feature that allows splitting the payments to different PayPal accounts? Would 100% of the income go towards the taxpayer identification number entered on my account as the main host?

I'll greatly appreciate your help. 

[Bianka11]

Hi Matt.  I am a superhost as well and just recently started cohosting for two people.  I am charging 20% on rental amount only and getting full cleaning fee in addition.  Does this sound correct or do I charge on the entire booking amount minus the cleaning.  The primary host has service fees so do I deduct those of the rental fees?  Thank you.