Sales, Use and Withholding Taxes for Michigan

[Richard-and-Marsha0]

I'm looking for a little help with my Michigan Sales, Use and Withholding taxes, where on form 5082 does the taxes collected and sent to Michigan for us go on the form as far as an allowable deduction?

[Susan820]

Good question! I'm also looking for Michigan state tax help. Do we receive a statement from Airbnb for the sales tax collected and remitted?  This year is a bit more complicated since I also remitted taxes for the first 6 months of 2017. Seems like we should have some documentation besides our printout in transaction history. 

[Sandra350]

Where did you see evidence that Michigan taxes were taken out by Airbnb? I printed my spreadsheet of income and did not see a column for this. I'm wondering if they actually ever did take out any taxes. I heard they were required to, but then Airbnb was silent as to what that would look like on their accounting. What did I miss?

Sure hope my tax accountant has better answers...

[Susan820]

If you go to "account preferences"  then "transaction history" and "gross earnings" and put in the year "2017" you should see "occupancy tax" here. Also, you should be able the download a whole year of transactions on a spreadsheet (cvs file - excel or numbers), this includes details for deductions, and occupancy tax. I called the State of Michigan and they said we are only responsible for reporting and paying sales tax for the first half of the year, we don't report sales tax earnings that airbnb paid. 

[Michael1473]

Hi I'm Mike from MI.

Last year my CpA told me that the taxes were sent in to the state.

I'm going to town and find out how true this is . I will get back with you.

Sounds like Airbnb could be dedefrauding the Hosts.

Something to check out!

[Angie139]

Hi Sandra, 

I am also a property owner with several Michigan properties on Air bnb.  I see that the tax was withheld begining in July, however, have found no evidence whatsoever that they "remitted" this tax.  I called the Michigan Department of Treasury and found that nothing has been "remitted" by air bnb on our behalf.  I have been receiving Bills from the Treasury department begining in Febuary, one by one, starting with July, because this is when I began to forgo the tax on the aribnb rentals and mail in our other income from our rentals.  I further found out that I not only owe the money that they claimed to have charged and sent in, but also a lot of penalty interest-charged by the day, from July thru now.  I have called Air bnb about the sales tax issues several times, with no help whatsoever.  The last time I called I actually BEGGED someone to please transfer me to someone that knew anything about the Michigan Sales tax, to which nobody knew anything at all!  This by far has been the most stressful part of Airbnb, announcing they are taking care of it and then having no information at all.  Our accountant is now on it as well (at $75/hr).  There is a huge disconnect from Airbnb on this, if you have found any information at all, I would be so happy to hear what you found out!  Thank you, Angie 

[Charlie-and-Andra0]

Has anyone found a way to figure out if Airbnb has actually been remitting the tax that they are collecting on our behalf? I recently received notification from the Dept of Treasury that tax for 2017 has not been paid on my behalf, therefore penalty fees have been added. 

[Fabio429]

HI Angie, I am struggling the same issue. how did you reslove this? I am losing my mind! any feedback is appreciated

[Jim1556]

@Fabio429

@Richard-and-Marsha0 

@Charlie-and-Andra0 

I am having the problem with Mi. use taxes not being paid in Nov 2020, did you find an answer? ABNB has collected nearly $800 in taxes with no payments to State of Mi. I can't get an answer from them.

jim1556

[Michael1473]

Hi Angie

I'm Mike reed

I went to my CPA and found out that if Airbnb doesn't remit the sales tax to the state of Michigan it becomes a class action suit against Airbnb and if they keep the tax it becomes a suit of defrouding the guest and Hosts and I work with one of the biggest CPA company in the US.

Thanks Mike

[Jim1556]

@Angie139 

I am having the problem with Mi. use taxes not being paid in Nov 2020, did you find an answer? ABNB has collected nearly $800 in taxes, this year,  with no payments to State of Mi. I can't get an answer from them.

jim1556

[Tina8766]

If they actually took the money from you and did not send it in, then that is fraud and stealing,  They should be charged through the court system, I would think. 

[Michael1473]

Hi Sandra

My name is Mike and yes Airbnb by Michigan law Airbnb has to remit payment to state of Michigan every three months on our behalf. And yes there is a spot that show a break down of all expenses they take out. Check it from your CPA  Not Airbnb .

Thanks Mike

[Jim1556]

I  listed property late 2019 on ABND. ABNB has collected over $800 in State of Mi Use tax. The state has no record of ABNB payments, The above comments are all dated 2018, has there been a correction to this ABNB problem? Jim

[Super47]

@Jim1556

If you want another poster to be notified of your question, you need to tag them, using the @ symbol. Like this - @Richard-and-Marsha0 @Michael1473 @Fabio429 @Charlie-and-Andra0