Tax Questions: WA State and IRS

[Greg103]

Hello community - 2017 was my first year hosting in WA state, and I have 3 tax questions I'm hoping you could help answer. WA is a state where Airbnb must remit sales and occupancy taxes on my behalf. 1) Please help me understand which amount I report to WA state - I am leaning toward gross, as that is the amount taxed. 2) Next, which amount do I report to the IRS: gross or net? I am leaning toward net, as my true earnings were not gross due to the fact it does not account for Airbnb's host fee deductions (what I truly earned was net). I cannot get Airbnb folks to answer these questions. 3) Is there a specific category my accountant needs to classify my earnings as a host to the IRS, or can it simply be earnings tied to my busines license? Thank you!

[Clare0]

@Greg103. When I do my taxes in California, I report the gross earnings and then deduct the Airbnb host fee as a "commission" for advertising my space.  I do this for both State and Federal reporting. 

You will need to present the total picture to your accountant so he can decide what is appropriate for you to report.  

This link might give you more information on how to report your taxes: 

https://www.airbnb.com/help/article/1213/resources-for-the-2017-us-tax-season

[Greg103]

Hi Clare - thank you for the response! That is insightful. I spoke to my accountant after posting this on Airbnb. He felt comfortable going with my net earning for the IRS. For WA state, they just want a comment that Airbnd remits taxes on my behalf (which they do for this state), which zeros taxes owed, and the City of Seattle doesn't tax my earning as I am way under the threshold. So I should be good. Again, thank you!

[Clare0]

@Greg103 Happy to help!