As a host that rents a ton every year, we report our income.
We did so because we were under the impression that AirbNb reports everyone's...not to mention it's the right thing to do.
But now I'm reading and understanding that AirbNb doesn't report the smaller hosts to the IRS.
This is disappointing, but wanting to have peace of mind....what's to prevent everyone from not reporting their income if they don't fall into the $20k and 200+ rentals? Is there any controls in place?
Note: As some background to what Brad is referring to here --- For the vast majority of USA hosts (who earn less than $20k a year in hosting and/or have fewer than 200 total reservations a year), Airbnb will NOT be reporting their income to the US federal government/Internal Revenue Service -- this is new for 2015 tax year. See my other post on this issue.
Post by High Priestess on Feb 2, 2016 22:01:00 GMT
My take on this is that the host who posted this question, is upset that some hosts might not report their income to the IRS. He is good and does that but he also HAS TO do it because he does a large enough volume business that Airbnb sends in a 1099-K for him. I have often seen this attitude in online comments -- where people who follow the rules are worried that others won't follow the rules and that the structures in place actually would potentially allow some to NOT follow the rules.
So the post is basically saying, "Isn't there any way to force the other hosts to follow the law like I do?"
I don't really ike that attitude. Because I dont' like people who are nosing into other's business, trying to make sure other people follow the law, when what others are doing or not doing does not effect them and has no potential to harm them.
That said, the income hosts get from Airbnb is not "under the table" income. People are not being handed cash. Hosts are getting paid via PayPal or perhaps Direct Deposit into their banks, all of which is easily traceable by the IRS. Hence I advise everyone to report all their Airbnb income on their taxes.
I second you, Deborah. What's up with busy bodies like this. Seriously, it is none of their business whether other people report their income to IRS or not. Not all income are captured on 1099 and people will still report it as we are supposed to. I rent a few houses long term and I don't get 1099 for those, but of course I still have to report it.
Exactly, Lambada. Anyone doing standard long term property rental is not having any agency report their income to the IRS--- they just collect checks or cash from their tenants and deposit this. Any small business dies the same-- they take in cash or check and deposit it. It's nobody else's business how they do their taxes or to follow behind them with a whip and scoldings.