New to hosting what about taxes?

[Carol-Lee1]

AirBnB says they collect and pay sales/lodging taxes for states they have an agreement with.  My state, Alabama, is one they collect tax for.  How do I find out how much they collect and how much is paid and when?  I'm entitled to know and to be assured it's being done and done correctly.    I also want the information for my records and for my income tax returns.  Do we get an accounting?  If so how and when?  I don't want to suddenly find out tax was never collected or paid and now I'm stuck.

[Clare0]

@Carol-Lee1 You should see the amount of taxes Airbnb has collected on your behalf in your Transaction History under Gross Earnings. 

In most cases, Airbnb remits to the appropriate taxing authority a lump sum amount, not itemizing every host involved.  It all depends on what sort of agreement Airbnb reached with the State. 

This is part of the notice I received when Airbnb started collecting TOT in my area: 

I hope this helps!

Clare

[Carol-Lee1]

Thanks Clare.  I found the information.  I'm not sure about the info AirBnB sent regarding lumping the tax payment together with all other hosts in the area.  How do I prove I'm paying tax?  They have my tax I'd so shouldn't it be credited to me?

[Clare0]

@Carol-Lee1 I understand what you are saying, but I don't worry about that at all since I will always have the information in my Transaction History and at year end Airbnb provides a consolidated report ( Transaction History > Earning Summary).  If there is any dispute, I can prove that Airbnb collected the taxes from my guests.  The county would go after Airbnb, not me. 

I also have a permit number since I have been paying TOT myself for many years.  Personnally, I like the way Airbnb is doing it and I'm sure that the county is happy since now 100% of the TOT taxes will be paid.  There were lots of hosts who never paid it either by design or by ignorance. 

So, in sum, you can prove that Airbnb is paying it for you.  You don't need to prove your are paying it since you are not.  Airbnb is. 

[Carol-Lee1]

Thank you!  Since I found out where the tax information is I feel much better.  I've had tax problems in the past and I know they can be unforgivingbin some instances.  

[Clare0]

@Carol-Lee1 Yeah, having tax issues can be horrendous, but in this case Airbnb is relieving you of the responsibility and is taking over the burden for you.  Best of luck!