8 ms·

One thing that has always puzzled me about AirBNB is that there's no mention anywhere about taxes. All this money changing hands without being taxed sure seems

One thing that has always puzzled me about AirBNB is that there's no mention anywhere about taxes. All this money changing hands without being taxed sure seems weird. Renters usually pay taxes for the rent they get, shouldn't people doing this on AirBNB do the same?

thatjoshguy 14y ago
When it comes tax time, isn't it the individuals responsibility to report all their income?
deleted 14y ago
[deleted]
pcopley 14y ago
This is no different. The onus is on the person renting out their property/room to declare rental income and remit the appropriate taxes. On a side note, it breaks my heart to read "all this money changing hands without being taxed sure seems weird."
- untog 14y ago
  On a side note, it breaks my heart to read "all this money changing hands without being taxed sure seems weird." Why? Because you don't like taxes on money changing hands? That debate aside, it doesn't matter- taxes are due, they should be paid.
  - cglace 14y ago
    Do you report All the items you bought online and that you didn't pay state sales tax on? You are supposed to.
    - Symmetry 14y ago
      On my state income tax form there's an "add this small amount to your taxes and we won't care about you buying normal stuff online" box, which I check each year. So sort of.
    - impendia 14y ago
      I do. I don't keep a list, but I make what I believe to be a fair ballpark estimate.
    - anonqzeht 14y ago
      "Supposed to" is debatable. States do not have authority to tax interstate commerce. They go ahead and ask for it anyway. Although they call it a "use tax," the the tax is calculated solely based on the money that changes hands in an interstate commerce transaction. Looks like a duck, quacks like a duck, has webbed feet like a duck, as they say. It's an interstate commerce tax. A personal expense does not become a business expense just because a taxpayer calls it that. But states think they can make an interstate commerce tax into a "use tax" just by calling it that.
- _delirium 14y ago
  What's a bit gray-area about it is that unlike someone like Craigslist, AirBnB isn't just a matchmaker, but has inserted themselves directly into the commercial transaction as the point of sale: they, not the property owner, are the ones who not only advertise the property, but complete the booking and charge the credit card. Whether that means they're responsible for filing the taxes is murky, and probably depends on which taxes and which jurisdiction.
  - tptacek 14y ago
    No, that makes it less of a grey area, because Airbnb issues 1099s for the money it disburses, and Craigslist obviously can't do that.
- gatlin 14y ago
  May I ask what is heart-breaking about paying taxes?
patrickgzill 14y ago
You've been indoctrinated. Get help!
patio11 14y ago
In the US, you have an obligation to pay taxes on income, regardless of whether you get it in a traditional fashion or from a new economy web 2.0 social networking service, regardless of whether it is in cash or electronic, and regardless of whether the government is aware of it or not. Compliance with this is... mixed. Airbnb follows its legal obligations to report monies which it disburses to hosts, which will in almost all cases constitute income, via a 1099 (or similar) form delivered to both the host and the IRS. see: http://www.airbnb.com/help/question/122 http://www.airbnb.com/help/question/122 , conveniently located near the top of the search results for [airbnb 1099] (if you knew the probable way they were going to report) or [airbnb taxes] if you didn't.

thatjoshguy 14y ago

When it comes tax time, isn't it the individuals responsibility to report all their income?

deleted 14y ago

[deleted]

pcopley 14y ago

This is no different. The onus is on the person renting out their property/room to declare rental income and remit the appropriate taxes. On a side note, it breaks my heart to read "all this money changing hands without being taxed sure seems weird."

untog 14y ago
On a side note, it breaks my heart to read "all this money changing hands without being taxed sure seems weird." Why? Because you don't like taxes on money changing hands? That debate aside, it doesn't matter- taxes are due, they should be paid.
- cglace 14y ago
  Do you report All the items you bought online and that you didn't pay state sales tax on? You are supposed to.
  - Symmetry 14y ago
    On my state income tax form there's an "add this small amount to your taxes and we won't care about you buying normal stuff online" box, which I check each year. So sort of.
  - impendia 14y ago
    I do. I don't keep a list, but I make what I believe to be a fair ballpark estimate.
  - anonqzeht 14y ago
    "Supposed to" is debatable. States do not have authority to tax interstate commerce. They go ahead and ask for it anyway. Although they call it a "use tax," the the tax is calculated solely based on the money that changes hands in an interstate commerce transaction. Looks like a duck, quacks like a duck, has webbed feet like a duck, as they say. It's an interstate commerce tax. A personal expense does not become a business expense just because a taxpayer calls it that. But states think they can make an interstate commerce tax into a "use tax" just by calling it that.
_delirium 14y ago
What's a bit gray-area about it is that unlike someone like Craigslist, AirBnB isn't just a matchmaker, but has inserted themselves directly into the commercial transaction as the point of sale: they, not the property owner, are the ones who not only advertise the property, but complete the booking and charge the credit card. Whether that means they're responsible for filing the taxes is murky, and probably depends on which taxes and which jurisdiction.
- tptacek 14y ago
  No, that makes it less of a grey area, because Airbnb issues 1099s for the money it disburses, and Craigslist obviously can't do that.
gatlin 14y ago
May I ask what is heart-breaking about paying taxes?

patrickgzill 14y ago

You've been indoctrinated. Get help!

patio11 14y ago

In the US, you have an obligation to pay taxes on income, regardless of whether you get it in a traditional fashion or from a new economy web 2.0 social networking service, regardless of whether it is in cash or electronic, and regardless of whether the government is aware of it or not. Compliance with this is... mixed. Airbnb follows its legal obligations to report monies which it disburses to hosts, which will in almost all cases constitute income, via a 1099 (or similar) form delivered to both the host and the IRS. see: http://www.airbnb.com/help/question/122 http://www.airbnb.com/help/question/122 , conveniently located near the top of the search results for [airbnb 1099] (if you knew the probable way they were going to report) or [airbnb taxes] if you didn't.