2022 us taxes - do you use airbnb's gross or do you start with net?

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so i’m confused. i file a schedule c because i participate materially in the running of it. i don’t get a 1099 because i only make about $20k/yr, and these years it’s mostly monthly stays, so i don’t have anything like 200 guests/yr…

airbnb’s earnings summary shows gross earnings - fees = total paid. so i just generally go ahead and use the total paid line because the fees are already deducted. is this right? because i’m seeing i can deduct these fees on schedule c.

should i be declaring gross?

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Hi, I so think you need to speak with an accountant, read some articles about Schedule C, and/or use TurboTax with the paid preparer assistance option.

I could answer your question correctly but I’m choosing not to because I don’t want to give tax advice as I am not a tax professional.

However your question indicates that Sch C is unfamiliar territory for you and so, one way or another, you need to educate yourself or give your return to a professional. Best wishes.

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Here’s what you do:

  1. On transaction history download the .csv file into Excel.
    That will show you the details.
  2. You’ll see in that file what you were paid out in column L.
  3. If you look at your 1099 you’ll (at least this is true in mine) that Airbnb shows the taxable amount to be:
    a) the amount they paid out to you, plus
    b) the Host fee (which they not you got), plus
    c) Any negative Resolution Center Payments that you made (in other words they will add not subtract the absolute value of these amounts to your taxable income.
  4. Your taxable income, so far, based on the 1099 will be:
    a) the amount shown as taxable (box 1a), LESS
    b) Host fees paid to Airbnb (column M) – you’ll take this as a tax deduction, LESS
    c) Amounts You paid out through the Resolution Center (shown as negative amounts in column K).
    As a test, what you get by taking 4a-4b-4c should equal the sum (you’ll have to add the SUM yourself in Excel) in column L.

I agree with Sleeping Coyote that you’ll want to study the tax rules or, better, work with an accountant so that you get all the deductions you’re entitled to. For example, you’ll have some depreciation/expensing on the property and improvements, expenses for supplies, maybe for help (like yourself – maybe you should be getting paid and earning credits for Social Security, or maybe not).

At least one year work with an accountant and right now is a good time to do that before the accountants get deep in their ‘busy season’ and don’t have as much time to consult with you.

I don’t see this on my 1099.

Not on my 1099

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She doesn’t see it on hers either because she doesn’t get one. She’s looking at Airbnb’s earnings statement. Links were emailed to us at the beginning of the month.

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Oh, Thank you.

@jeannez So, I don’t know what you’re looking at because I didn’t receive what you have.

But I think I would want to check what Airbnb has done by downloading the .csv file from Transaction History and understand the amount shown on Airbnb’s earnings statement, and whether there are deductions you’re entitled to on your return.

As discussed above, à la @SleepingCoyote 's recommendation, I’d also want to discuss with an accountant that you’re considering all the tax deductions to which you might be entitled, as well as related issues like your pay, if any, retirement plan contributions you’re eligible to make based on any profits you’re generating here.

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At the risk of confusing you further, Material Participation determines whether or not your losses are limited. It doesn’t determine whether or not you file Schedule C.

If your rentals are monthly stays then you have to meet the more onerous qualification of providing Substantial Services to file on Schedule C instead of Schedule E (unless of course, you qualify as a real estate professional).

Substantial services are weekly linen changes, maid service, etc during the guest stay, e.g. not cleaning in between or cleaning the common areas. I’m sorry, I realize you may have merely misspoken but I just want to make sure that you’re using the correct Schedule.

But, yes, I report gross receipts and then show fees and expenses as deductions on all my Sched Cs. It’s what I recommend because I think it’s always wise to “show your work” to the IRS even when you aren’t getting a 1099 for them to compare your numbers with. They love details and are less likely to ask questions if they can plainly see how you worked everything out.

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thanks for everyone’s replies. to clear up something, airbnb only gives 1099r to hosts who have more than 200 stays in a year. i can’t imagine; personally i have 40-50 in a year. so i have to figure it out by myself. i’ve always done my own taxes, but because of the schedule c thing, and all the various business credits and other things, i’m more confused than ever. so thanks for your efforts. i’m showing my work, and keep good receipts. my usual tactic is to fill out my own tax forms, and then file online, so the wizard thingie checks my work for me. they sometimes fine deductions i didn’t know about. but it’s usually pretty spot on. i sure wish they’d explain the rules better, tho