New Los Angeles Taxes

[Alan97]

Hi everyone,

1. - I am confused about filing the tax. Referring to Airbnb website (link below) we have to pay tax if we have more than 200 transactions AND make over $20,000. So if I did not have 200 reservation, would I still file the tax?
2. -Also, I haven't got the business license yet? Is that required in Loss Angeles County?
3. -What if I haven't filled the taxpayer information on Airbnb for 2016? On the taxpayer information says: Any edits you will not affect your 2016 tax forms. They will be applied to 2017 and beyond. 

Thank you for the help

The US Internal Revenue Service (IRS) requires US companies that process payments, including Airbnb, to report gross earnings for all US users who earn over $20,000 and have 200+ transactions in the calendar year.

(https://www.airbnb.com/help/article/414/should-i-expect-to-receive-a-tax-form-from-airbnb )

[Alice-and-Jeff0]

First, you have to pay income taxes on ALL income.  

Second, Airbnb will only issue you a 1099 if you have 200 or $20,000, otherwise you can use your Earnings statement to do your yearly taxes.  

Third, while I do not know what the business license laws are in your county, you should still pay taxes regardless of having the appropriate paperwork or not.  

JM2C

[Cynthia-and-Chris1]

1.)  You must report ALL Airbnb income to the IRS and State taxing authority even if you do not receive a 1099 from Airbnb.  You will use your Earnings Summary for the data you need.

2.) As a host (and business owner), you are responsible for determining what permits/registrations you need in order to be compliant in your area.  This may help: https://www.airbnb.com/help/article/864/los-angeles--ca

3.) Fill it in now so you are good going forward.

[Clare0]

@Alan97 Even if you do not get a 1099K, you still are required to report your Airbnb income to the IRS as appropriate for your filing status.  You can get your earnings by going to Transaction History then clicking on Earnings Summary. 

You will need to ask the appropriate authority in Los Angeles to see if you need a business license.  My guess is that you do not since Airbnb is collecting and paying the Occupancy Taxes on your behalf.  But best to double check.  I have to have a business license in San Luis Obispo County, but then I pay the taxes out of pocket. 

If you did not enter your tax id info on your account, Airbnb is probably witholding 28% of your payouts for tax purposes.  Is that the case? 

[Cynthia-and-Chris1]

https://www.airbnb.com/help/article/1464/business-licensing-in-los-angeles