Helping foreign co-host on foreign property where she takes all earnings, still subject to tax?

Minjee0
Level 1
Dublin, CA

Helping foreign co-host on foreign property where she takes all earnings, still subject to tax?

I'm a US citizen helping my Chinese citizen mother-in-law manage her property in China. Her Chinese bank account is getting all earnings from her property listing and I do not receive any of it. However, I still received a notice for the American Rescue Plan Act (ARPA) of 2021 to report taxes on this listing and the listing's calendar is blocked. None of the provided options (i.e., W-9, W-8ECI, W-8BEN) in the notifications describes my situation. I spoke to multiple AirBnB representatives through the phone and none were able to help. What are my options? Do I have to remove myself? I created the listing and added my mother-in-law as the primary host. Will removing myself delete the listing?

 

It's pretty baffling how a foreign property listing with a foreign bank account tied to it can trigger US tax reporting when a co-host is American who makes no money from this business.

1 Reply 1
Mike-And-Jane0
Level 10
England, United Kingdom

@Minjee0 Not sure if it is allowed but I would remove you from the listing and then just share a password with your mother in law. Worst case you will be accused of tax evasion, found guilty, and sent to jail. Best case is the IRS is happy that the earnings are not yours.