How do taxes work if I'm a member based in the U.S. but hosting an apartment in Australia?

[Jennifer243]

Hi all,

I am new to hosting and have some questions about taxes.

I've been a guest on Airbnb and my account is verified with my U.S. number and other information. I've recently hosted an apartment in Melbourne, Australia under my account with a bank transfer to my Australian bank account as a payout method. All of my costs and income are done in Australian dollars. My question is - should I still fill out US tax forms on Airbnb? Or should I just focus on paying income taxes in Australia? 

Thanks!

Jennifer

[David126]

US residents are taxed on world wide income.

[Lawrene0]

@Jennifer243: Quoting the IRS: "If you are a U.S. citizen or resident alien, you must report income from all sources within and outside of the U.S." Also there is a harsh bit a little further down on the Income From Abroad page: "Not reporting income from foreign sources may be a crime." 

Found it at https://www.irs.gov/businesses/income-from-abroad-is-taxable. I am familiar with it because of family US/Canada reporting. Works for Australia, though, too.

Hope that helps. 

[Jennifer243]

Thanks Lawrene. But does your family have to report taxes again in Australia? 

The thing is - 

I hold a US green card and live in New York. I host an apartment in Melbourne, Australia under my Airbnb account because I am familiar with the interface. But the legal owner of the property is my brother who is a student there and has nothing to do with the US. But all of the expenses (utilities, internet) are paid for with an Australian banking account under my name and the rent is going in there as well is AUD. I am trying to avoid paying taxes in both countries. I would love your advice if possible.

Thank you again. 

[Lawrene0]

@Jennifer243, it depends on who ends up with the income - sounds like it might be your brother, and in that case you have nothing to worry about. There will be a paper (or electronic) trail that shows the income ultimately goes to him even though the AirBnB account is in your name. If you are banking any of the money yourself, though, you have to report it on your US income tax return. 

And no, no one in my family is either Australian or owns property in Australia. I am sorry if that was confusing. I just wanted you to know that even though I am Canadian, I have some experience with US income taxes on foreign-earned income and have had to look things up before. Your absolute best bet is going to be reading the IRS website. Or maybe listening to @David126, since he is an actual American and seems wise. 🙂

[David126]

In that case put all the money through his account, not yours, you can manage it and will save a lot of hassle with FBAR etc.