Corporate Taxes for Rental Businesses

Corporate taxes can be a confusing subject for Airbnb hosts. If your Airbnb business is incorporated, you probably need some help preparing your taxes. You need a lot of paperwork to file corporate taxes, so we put them together to help save you time. Hopefully, this post will make it easier to file your taxes for your incorporated Airbnb.

These resources are here for your convenience, but you shouldn’t file taxes without the help of a certified tax advisor.

corporate taxes for rentals

Taxes for Incorporated Airbnb Businesses

  • If you are incorporated as a partnership, you will need to fill out Tax Form 1065.  Additionally, you should record all income and expenses on Tax Form 8825.
  • Your personal income follows the outline included in your corporation’s operating agreement. Report income or losses on Schedule K-1.  Then, these losses or income flows into your 1040 tax return. 
  • Tax Form 1065 might not include the Airbnb income you reported on other forms.  Don’t worry!  This is normal. Tax Form 1065 only contains gross receipts or sales. It doesn’t include your Airbnb rental income.
  • You need to complete a Balance Sheet for your Airbnb corporation. When you’re done filling it out, your assets should be equal to the combined total of your liabilities and shareholder equity.
  • If you split your Airbnb income with other people and one person has more than a 50% interest, you need to fill out Schedule B-1: Information on Partners Owning 50% or More of the Partnership.
  • Also, don’t forget to fill out a state return for every state where you have Airbnb rentals or income. 

Get Professional Tax Help

Corporate taxes are complicated. Don’t get stuck paying a big penalty because you made an error. You should always file under the guidance of a certified tax professional. They’ll ensure your returns are compliant and they can even help you save money. The pros at Shared Economy Tax specialize in Airbnb taxes for corporations, so they can help you get the most out of your taxes. Get started today with a free one-on-one consultation with a certified tax pro, or sign up for our free newsletter using the form below for even more free tax tips.

About the Author

Miguel Alexander Centeno

Miguel Alexander Centeno is an author, speaker, and tax leader at Shared Economy Tax. A former Big 4 tax manager, he represents taxpayers in all matters before the IRS, including the U.S. Tax Court. He has been quoted in the Wall Street Journal, Fox Business, and MSNBC on tax related articles and has testified before the U.S. House of Representatives as a part of hearings for the Tax Cuts and Jobs Act. A father of three, Miguel is an avid acoustic guitar player, gravel cyclist and once-a-week yogi.
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