Federal Tax Deduction for Occupancy Tax?

Federal Tax Deduction for Occupancy Tax?

I'm in Oakland and host. Half way through 2015 AirBnB started automatically collecting and paying occupancy taxes for my rental at 14%. I have to pay out of pocket to the city of Oakland for the first half of the year occupany tax.

I assume I can deduct from my federal income the taxes I paid out-of-pocket for the first half of the year.

Can I also deduct the taxes automatically paid by AirBnB to the city of Oakland? Those taxes never went into my account but they potentially did reduce my gross income by reducing the number of nights rented.

1 Reply 1
Clare0
Level 10
Templeton, CA

@Joe---Jade-and-Miguel0 I'm not a CPA or tax accountant, but I deduct the occupancy tax that I pay out of the income received.   I would think that any tax Airbnb collects from guests are not tax deductible since you didn't pay it.  If anyone could claim it as a deduction, it would be the guest.  I don't understand your question about reducing the number of nights rented.  Probably not.