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That's fine, but it's unproven that the AirBnB market works at all if renters have to pay 20%+ hotel taxes and apartment owners have to pay income tax. It would
by tomkarlo 13y ago
That's fine, but it's unproven that the AirBnB market works at all if renters have to pay 20%+ hotel taxes and apartment owners have to pay income tax. It would both raise the effective rates and greatly decrease the received benefit to the seller -- there might not be a clearing market any more. I'd consider renting my spare room for $100 a night, but not for $40.
- gknoy 13y agoI'm pretty sure that the hosts still have to pay income tax, if they are getting paid money for having someone stay in their house.
- tomkarlo 13y agoThey're supposed to. How many do you think actually are?
- Aloisius 13y agoProbably about the same percent as individuals who rent out their apartment long-term?
- tomkarlo 13y agoI doubt it. Landlords have to count rent as aggregate gross income on their tax returns, and it's probably both fairly easy to get caught and fairly serious if you do get caught. http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Rental-Income-and-Expenses---Real-Estate-Tax-Tips http://www.irs.gov/Businesses/Small-Businesses-&-Self-Em... (If you're just subletting, only any net gain is taxable, which is probably minor.)