Tax for Foreigners Who Host in the U.S. and Use a Co-Host

[Jeff-and-Melany0]

Hi, as I understand it, when a foreigner owns a house in the United States and rents through AirBNB, taxes of 30% are deducted before payment. If this is true, how is payment to a co-host handled?  Does the tax come our pre-payment or post-payment to the co-host?  In other words, is the money paid to a co-host taxed before its paid out?

For example, on a $1,000 rental, a foreign host would normally get $700, because of the 30% tax.  If they're also paying a co-host 20%, are they getting $1,000 - $200 - $300 = $500 (tax pre co-host payment), or $1,000 - $200 - $240 = $560 (tax post co-host payment).  

Any insights?

[Helen3]

Hi @Jeff-and-Melany0

This is a question for Airbnb I feel. We are a community of hosts not monitored by Airbnb.

When it comes to financial issues Airbnb is best placed to advise you.

[Jeff-and-Melany0]

Not sure how to get them the question.  Hoped they'd reply here.  Ideas?