Non-US Resident Alien (Living Outside of US) having US Listings registered as hotels: How to avoid the 35% Withholding Tax

in
United States
Level 1
73 Views

Hello Everybody

 

I have many US based listings published on my profile. All this listings are part of the Marriott Vacation Club, which means I am an owner and that entitles me to spend a week every year in such properties. Sometimes when I cannot use my points for my holiday I sell them through Airbnb.  Starting 2022, a 35% withholding is being made for every reservation so I am not happy with that and I am looking for ways to either prevent Airbnb from withholding or to promote a payback from the IRS.

 

What I've tried so far is the following:

 

0. I had the W8-BEN form filled out but starting 2022 it no longer works for the purpose.

 

1. Fill the W8-ECI form, but in order to do that, I need an ITIN which I haven´t been able to get because I need a letter signed by Airbnb and unfortunately, they say that under no circumstance they will issue that or any letter.

 

2. I learned about the 14-day rule, which most certainly work for me because I rent for less than 14 days for sure. But I have no clue if that rule applies to my case, being a Non-US resident Alien, renting hotel rooms registered within the US.

   2a. Can someone help me telling me if the 14-day rule applies to my case?

   2b. Can someone tell me what and how I need to do things in order to recover what Airbnb is withholding?

 

- Does someone know how to stop Airbnb from withholding the 35%? Or how to make the withholdings smaller?

- Having no deductions whatsoever, does someone know of a way in which I could recover at least some of the withholdings?

 

Accute answers and any other ideas to achieve the purpose will be greatly appreciated!!!

 

Thank you all!

2 Replies

Re: Non-US Resident Alien (Living Outside of US) having US Listings registered as hotels: How to avoid the 35% Withholding Tax

in
England, United Kingdom
Level 10

@Miguel1582 I would use another site to sell your timeshare weeks

Re: Non-US Resident Alien (Living Outside of US) having US Listings registered as hotels: How to avoid the 35% Withholding Tax

in
United States
Level 1

Hello Mike, Jane

 

I could also try to publish listings in another country were tax restrictions are different from the US.

 

Does anyone know of a country that does not withhold from Airbnb? Or a country that withholds smaller percentages?

 

Thanks!

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