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Airbnb Tax Preparation for U.S. Hosts

Airbnb/Short Term Rental Tax Preparation

Working through the complexities of Airbnb income can be a headache for some. Unlike other shared economy platforms, Airbnb income requires you to have a deep understanding of rental property income, various state and local room and board taxes, not to mention identifying the potential tax deductions that are available to you. For these reasons, we’ve decided to heavily investigate these tax issues and came to better understand the tax law to help mitigate your tax liability. Through this, we’re confident in our skills to best service you and limit any unnecessary tax exposure. We have helped our clients answer the following questions:

  • Do I have to report my income if I rented out my home for less than 14 days?
  • Should I rent or buy another house to rent out?
  • Can I deduct my water bill, electricity and internet?
  • Where do I report my Airbnb income, is it on a Schedule E?
  • Do I have to pay hotel taxes?
  • What should I do if I owe taxes and did not save any money?

These questions, along with many more, have been asked by our Clients which caused us to focus on providing superior quality to Airbnb hosts. We have been able to save our Clients a substantial amount of money by helping them identify all of the tax deductions that are special to their circumstances and we’re confident that we’ll be able to apply this methodology for you to ensure that you’re saving as much money as possible.

What We Do:

Shared Economy CPA is the premiere CPA firm for 1099 Independent Contractors and those working in the Sharing Economy to help with tax planning, compliance, preparation and savings. Specifically, we provide the following services:

  • Individual and Business Income Tax Return Preparation
  • Entity Selection: Corporate and LLC Tax Reporting Structures set-ups and associated tax requirements
  • Compliance with local, state, and federal regulatory requirements
  • Tax and Estate Planning
  • Quarterly tax payment planning and preparation
  • IRS Audit and Defense

Short Term Rental Tax Preparation Services:

Renting your home allows you to supplement (or support) your income while providing you with great tax benefits. Below is a partial list of value added services we provide to our Clients:

  • Maximizing Home Mortgage, Rental Expense Deductions
  • W-2 and Start-up Expense Allocations with HomeSharing Activities
  • Properly structuring Short Term Rental activities: LLC, S-Corp, Sole Proprietorship, etc.
  • Income and Expense Allocations Between Personal and Business
  • Short Term Rental Income and Unemployment Tax Reporting
  • Renovating and/or Finishing a New Building on Your Property For Rental Activities
  • Capital Improvements to Your Property: New Heaters, Plumbing, Fixtures, etc.
  • Receipt and RecordKeeping Management for Tax Purposes

Our Clients:

Robbie – Airbnb
Los Angeles, California

Founder, Inner Confidence

Derek was able to help get my complicated and disorganized business ready for tax season and the process went amazingly well. He took care of everything and alleviated all my headaches. I cannot recommend Derek highly enough!

Matt – Airbnb
Los Angeles, California

​I started using Airbnb to rent out an extra room in my house last year and had no idea that I needed to save money for taxes when April 15th came around the corner. Luckily, I came to the Shared Economy CPA and was able to deduct more than I had anticipated and was able to save a ton of money. I would highly recommend Derek’s services to anyone who is looking to save money on their taxes and wants high quality professional services.

Jenny – Airbnb
Chicago, Illinois

Founder, Bloom Designs

Derek and his team were incredible in helping me not only fulfill my tax obligations for both Airbnb and RelayRides, but helped save me a ton of money in deductions I would have never known I was eligible for! They were smart, efficient, and gave me peace of mind as I knew they were not only tax pros in the traditional sense, but specialize in the shared economy as well! I am so happy to have found this organization!

We’ve been featured in the following publications:

Webinars for the Airbnb Host

Looking to learn how to maximize your Airbnb business without the pitfalls? Our team is unlike any other in that we’ve helped maximize tax savings with over 800 Airbnb host tax returns under our belts, across 35 states.

  • What are the mistakes we consistently catch our clients making?
  • How can you automate tax savings while collecting interest on the money you put away?
  • Can you automate your accounting so you are a reviewer and not a bookkeeper?
  • What happens if you don’t have a business license in your city?

These are just some of the questions we tackle in our bi-weekly Airbnb webinar, where we educate you on the importance of guidance and advice that we provide as we continue to serve the Airbnb host community.

The difference between us and your neighborhood tax professional? We’re not guessing when it comes to Homesharing tax issues, we’re sharing our experience.