US tax question

in
Nashville, TN
Level 1
1,706 Views

if we earned > than 20K in 2015 but had less than 200 reservations will we still get a 1099? I received an email stating that I would not receive a 1099.

8 Replies

Re: US tax question

in
Templeton, CA
Level 10

@Elizabeth27 the email Aibnb sent me said $20,000 AND 200 bookings.  Sounds to me that both have to apply to get a 1099K.  

Re: US tax question

in
Boulder, CO
Level 1

I read that if you rent 14 days or less total, and make under $600, the income does not need to be reported. I fit that category, do you know if that is accurate? Or do we only report it if we get a tax form? Thanks! J.

Re: US tax question

in
Templeton, CA
Level 10

@Justin6 Hi there! As with everything related to taxes, the IRS code is oblique and confusing.  Wish I could answer with a simple yes or no, but not being an IRS agent, I hesistate to give advice.  Publication 527 covers vacation rental income.  Also, I stumbled accross this interesting interactive link on irs.gov:

 

https://www.irs.gov/uac/Is-My-Residential-Rental-Income-Taxable-and-or-Are-My-Expenses-Deductible%3F

 

Hope this helps!

Re: US tax question

in
Boulder, CO
Level 1

Thanks for the help @Clare0! Yes, it is helpful. Also, THIS was incredibly helpful, a tax-related document prepared for AirBnB; it has helped me determine what to do:

 

http://assets.airbnb.com/eyguidance/us.pdf

 

The booklet provides a flow chart and detailed description on how to distinguish what needs to be reported as taxable income and what doesn't:

 

"If you use a dwelling unit as a home and you rent it less than 15 days during the year, its primary function is not considered to be rental and you are not required to report the rental income and rental expenses from this activity. If you use a dwelling unit as a home and rent it 15 days or more during the year, include all your rental income in your income. Since you used the dwelling unit for personal purposes, you must divide your expenses between the rental use and the personal use as described earlier. The expenses for personal use are not deductible as rental expenses."

 

 

I rented my apartment for only 14 days last year, so I take that to mean I do not need to report my income (it was also nowhere near the $20k airbnb set as their minimum to receive a 1099). Very helpful, and this will be the document I turn to should any problems arise haha. Thanks again! 

 

J.

Re: US tax question

in
Arkport, NY
Level 10

No matter please contact your accountant. I just heard of a couple audits of people using Airbnb. I don't have much informtion.

Re: US tax question

in
New York, NY
Level 1

Is this a new policy for 2015?  I remember getting a 1099 last year (for 2014) even though I only collected $2000.  I didn't report it but just got a notice from the IRS that I owed $900 due to the change in income and that I should have paid a self-employment tax.  That was a shock!  Hardly makes the rental income worth it. 

The income was reported by Airbnb.  

 

So, now the way it sounds, they are NOT reporting income under 20k/200days.  

 

If this is different from 2014, I should be ok not reporting my small earnings.  But if not, then I'm afraid the same thing will happen again. 

 

And yes, I will talk to an accountant.  

 

 

Re: US tax question

in
Templeton, CA
Level 10

@Emily24 Yes, Airbnb is doing things differently this year.  The fact that you will not be getting a 1099K for 2015 does not mean that you do not have to report your income as required by the IRS.  Many hosts are making this mistake, I fear, and will suffer the consequences as you have illustrated in your post. 

Re: US tax question

in
Atlanta, GA
Level 2

What did you find out on this?  I made less than $500 last year on Airbnb so didn't know if I had to report or be "self employed" or a landlord even

Join the conversation