are the occupancy taxes airbnb paid in 2018 included in my 'gross earnings' amount?

[Renee249]

My gross earnings tab reports $349 for gross earnings.  Airbnb collects and pays occupancy taxes, it says $42.58 paid in occupancy taxes.  My accountant needs to know if this $42.58 for occupancy taxes are included in my gross earning of $349?  If they are, I can deduct this expense.  If not, I won't deduct.  

Detailed transaction history: 

$149.50 X 2 nights = $299

cleaning fees               $50

service fee                    $10.47 

total:    $349, including service fee, is my gross earnings.  So I know I can deduct cleaning and service fee as expenses, but what about the $42.58 for occupancy taxes?   Did the guest pay this to airbnb who in turn paid to the city/state,  so it doesn't show up in my gross earnings?   

[Donna240]

@Renee249

$349 is the combination of your rental amount and cleaning fee which makes it your gross. The service fee is not included because it is not income, but a dedutible item for your cost of doing business with Airbnb. The service fee that Airbnb retains for its services is a deductable item for you since it is being taken from your rental fee, so you may subtract that from your gross as a deductible. When you subtract that you have your net income of $338.53. The $349 does not "include the service fee", but the service fee is deducted from it to produce your net income.

The occupancy tax is a separate matter. It has been collected by Airbnb and paid on your behalf, but since you never received it, because of the deal Airbnb has made with your city or state, it is not part of your gross, even though it is part of the payment received from the guest by Airbnb. It is paid into their tax account and you do not even need to sign up for a Transient Occupancy Tax account of your own. 

[Renee249]

Very helpful reply, that answered my question perfectly, thank you!!!!!!