The coronavirus pandemic forced many businesses to close their doors. Unfortunately, the lockdown has a disproportionate impact on smaller firms. Congress recently passed the Coronavirus Aid, Relief, and Economic Security or CARES Act to help the country survive the economic downturn that resulted from the nationwide lockdown. The CARES Act established several relief programs, including […]
How to Avoid Airbnb Backup Withholding
Airbnb doesn’t typically hold back any funds for taxes. You still have to pay taxes on your earnings, but Airbnb doesn’t pay them for you. You’re considered self employed, so you have to calculate and pay your taxes on your own. However, you have to provide your taxpayer information so Airbnb can identify you. Airbnb […]
Occupancy Tax Rates for Airbnb in Major Cities
A few years ago, cities began to realize that Airbnb rentals were eating into their tax revenues. At the time, Airbnb hosts weren’t paying taxes like hotels, so many US cities set out to change that. Now, many cities make Airbnb hosts pay taxes just like hotels. In fact, occupancy taxes commonly go by the […]
Airbnb Hosts: How to Respond to IRS Notice CP2000
Did you receive a CP2000 notice from the IRS? If so, don’t ignore it. Usually, the letters warn you about discrepancies between your reported earnings and IRS records. The CP2000 notice isn’t as bad as an audit, but don’t take it lightly. CP2000 is serious business and if you don’t respond, you could face harsh […]
NAICS Codes List for Sharing Economy: Quick Reference Guide
When you’re filling out paperwork for your business, you might have come across a question that asks for your business’s NAICS code. Most people don’t know what this is about, but it’s just a numbering system the government uses to classify your business. The system doesn’t have a number for everything, so sometimes you just […]
How Do I Set Up a Payment Plan with the IRS?
The tax deadline is just a few short weeks away. Your tax return and tax payment are both due on the tax deadline. In instances where your tax bill is more than you can afford to pay, you have the ability to set up a payment plan with the IRS. Here we will walk you […]
Are REITs a Good Idea for Airbnb Hosts?
What is a Real Estate Investment Trust?A REIT, or Real Estate Investment Trust, is a company that owns or provides financing for income-producing real estate. Similar to mutual funds, REITs have shareholders and pay out taxable income as dividends. REITs enable ordinary investors to invest in portfolios of properties via the purchase of stocks. The majority of REITs are traded on major stock exchanges, however there are also public non-listed REITs and private REITs. REITs generally fall into tw […] […]
Countdown to Tax Day 2020: The July 15 Deadline
Tax day 2020 is right around the corner, so it’s time to start thinking about taxes. If you haven’t prepared your 2019 taxes yet, now is a good time to get started. The IRS extended the 2019 tax deadline to July 15 as a result of the COVID-19 pandemic, so taxpayers had three extra months […]
Filing Requirements for Mexico Airbnb Hosts
In Mexico, there is no differentiation between residents and non-residents when it comes to the payment of taxes. As a United States citizen, you are still required to pay taxes if you own rental property in Mexico that you rent out on Airbnb. As a rental property owner, you are required to pay Mexico Income Tax, called ISR (Impuesto Sobre la Renta) in Spanish, and Mexico Value Added Taxes, called Impuesto al Valor Agregado (IVA) in Spanish. Thanks to a tax treaty between the United States […] […]
Filing requirements for London Airbnb Hosts
Expanding your Airbnb business into international territory can be intimidating. After all, foreign tax laws differ from the U.S., so renting property abroad can complicate your tax situation. However, if your prepared, renting Airbnb properties abroad can be a great way to earn extra money. Best of all, you’ll always have a place to stay […]