Managing/posting property for a relative

[Joe-and-Crystina0]

We have two properties for which we've regularly hosted guests via Airbnb.

My in-laws own a property that we think would be great for Airbnb and have asked us to manage it for them. If we're adding this to our profile, how does that work for tax reporting? I know we get the 1099 from Airbnb, but can we set it up so that there's a separate one for that property and for the other properties that we own and pay tax for?

[Michelle0]

Hi there! That's very nice of you to offer to manage their rental for them. For tax purposes, and for other reasons, the best thing to do will be to create a profile under their name and tax information. 

You can also rely on a service such as Guesty to easy some of the hosting/messaging burden.

Hope this helps!

-Michelle

Founder at Cityami

[Derek0]

Hey Michelle,

Would love to connect and potentially collaborate this tax season.

[Daniel-and-Marsio0]

Hi Joe & Crystina

Good question! I have exactly the same issue. Whilst wanting to benefit from my existing, well-established profile / reviews / 'cross-polinating' viewer traffic etc. (rather than setting up a separate account, which would be very complicated) I am also concerned about the tax implications of having this extra listing (& income) associated with my name. 

There must be a way to resolve this. I see that lots of hosts have multiple listings - some have huge numbers of listings, all on one profile. I'm certain that some of these hosts are merely managers of other people' properties and don't actually own all those listings themselves, so they are making themselves liable for a massive tax burden should they be audited (or if they are submitting self-assessment tax returns). 

I wonder how they are declaring the situation? It is probably a different siutation in USA / UK anyway...

A while ago I saw that there was a way of splitting the expected income from a future reservation between two recipients, which would help - at least the income would be syphoned in the right account direction. However, the split was based on a percentage of the income that you could set and the system wouldn't allow a 0 / 100% split. The nearest I could get it was 1% / 99% - which still meant that you would be associated with the extra income, albeit a small proportion. I need to look at that section again and see if it has been changed since I last tried... it was a while ago and things change so rapidly! Please let me know if you have any bright ideas or if you receive any advice directly from Airbnb (you might not get a satisfactory solution on this community forum).

Kind regards

Daniel