Question about Taxes

[Karen637]

I am new to airbnb and I gave my accountant all my records to do my taxes. 

He told me that I had to consider this a "self employment" and pay all the requisite self employment taxes!   He also told me that I had to collect sales tax since my average client stays less than 7 days.  Does anyone have any experience with this?  I live in NY state.

Thank you,

Karen

[Linda108]

@Karen637  I am not a tax expert but Air BNB has a great article written by Ernst and Young about US taxes.  Here is the link

https://assets.airbnb.com/eyguidance/us.pdf

Hope this helps

[Linda341]

hi 

 i want to know i am indian and my freind having prorperty in us , he is also live in india , now his airbnb income come in my account , can you please tell me , if i  ampaying income tax in india and count airbnb income my income , then it is necessary to pay us tax also , and who will pay the us tax , m self or my freind .   

[Helen3]

You and your friend need to speak to an accountant in India and ask for their advice

[Matthew285]

@Karen637, please read the document @Linda108 posted from Ernst & Young. This will be authoritative guidance.

The relevant section would probably be this:

"Rental income and expenses are reported on Schedule C or Schedule E of your tax return (Form 1040). If you are a real estate dealer who is engaged in the business of selling real estate to customers with the purposes of making a profit or an owner of a hotel, motel, etc., who provides services (maid services, etc.) for guests, report the rental income and expenses on Schedule C. If you are not, report the rental income and expenses on Schedule E. Schedule C income may be subject to self-employment tax, while Schedule E income may be subject to Net Investment Income Tax"

and

"If you are required to report income and expenses from your rental activity on Schedule C, you may be subject to self-employment tax. If you are required to report income and expenses from your rental activity on Schedule E, you may be subject to Net Investment Income Tax. Please consult your tax advisor for more details on your specific circumstances."

It seems that self-employment taxes apply if you are a Real Estate Dealer or the owner of a hotel/motel.

Otherwise, it is Schedule E without the Self-Employment Taxes (but with Net Investment Income Tax).

Show this document to your tax preparer.