The short-term rental (STR) industry has seen a massive boom over the last several years. These days, many travelers prefer Airbnb or VRBO over traditional hotels. And this trend has led to the growth of many operators, from empty nesters putting their spare rooms on Airbnb to hungry upstart entrepreneurs standing up multiple listings in […]
Category: Airbnb Taxes
3 Things to Consider Before Filing an Airbnb Tax Extension
Approximately 10 million individuals file an extension every year, and many of them are homeshare hosts. If you rent on Airbnb, you should consider a few things. This list explains the top three things you should consider before pulling the trigger on your Airbnb tax extension. Check out our special blog post on COVID-19 tax extensions to […]
Airbnb Tax Planning for Hosts
How do you report Airbnb taxes? Estimated tax planning is the best way to ensure that your taxes are properly filed as an Airbnb host. Here are some tips to help you prepare your Airbnb taxes so that you can avoid tax problems. […]
Is It Cheaper to Buy or Build a House to Expand Your Airbnb Business?
Many travelers are beginning to prefer homeshare platforms over traditional hotels, and platforms like Airbnb and VRBO are growing at an incredible rate. These easy-to-use platforms provide property owners with an easy way to list rentals, and some are making it into a full-time business. If you’re interested in growing your homeshare business, you might […]
How to File Your Airbnb Estimated Taxes
The IRS classifies your Airbnb earnings as income, and you have to pay taxes on those earnings. If you expect to owe more than $1,000 in 1099 taxes, you must pay quarterly taxes for your earnings. Some new hosts might feel overwhelmed with these new tax hurdles, but it’s not as bad as it sounds. […]
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 […]
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 […] […]
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 […] […]