New DC Hotel Tax

[Kurt2]

AirBnB is informing me that they will start collecting DC Occupancy Taxes starting 15 Feb. I have a long term guest staying for 120 days starting at the end of this month. I read the law and it says they will levy the tax on AirBnB reservations for anything 90 days or less.

I'm just wondering if AirBnB will forgo collecting the tax if they see the reservation is longer than 90 days, which would be in line with the city ordinance, or if they will collect it and than reimburse us, or if we have to wait to see the money refunded when we do our taxes in early 2017. This will help me plan financially. Thanks.

Sincerely,

Kurt Z

[Clare0]

You'll need to ask Airbnb specifically on this and I've added a helpful link to contact them.  Another question you need to find out though is if the tax applies to reservations made Feb 15 and thereafter or actual stays. My county started a new tax effective July 1, 2015 but it applied only to reservations made July 1 and after.  I had several reservations made in June for stays in July.  The new tax did not apply to those reservations.  You might want to check out that angle if you haven't already. 

Here's how to contact Airbnb: 

https://community.airbnb.com/t5/Tips-Tricks/Contact-Airbnb-A-How-To-Guide/m-p/16165/highlight/false#...

[Derek0]

Hey Kurt,

You may be able to claim some of that revenue on a Schedule E instead of a Schedule C and bypass self-employment taxes.  Feel free to email me if you have any more questions: derek@SharedEconomyCPA.com