Hi have received yesterday a mail from Airbnb that they will stop do direct payment to co-host. Why are they stopping ?
The best people to ask that would be Airbnb. What did it say in the email you received as the reason?
Its a legal thing, from now on you have to pay your co-host.
Here’s my guess – business decision to transfer out that workload to the hosts. Why? Maybe they’ve reached some internal goal or saturation point of co-hosts (to increase bookings), so there is no business reason to provide that support; it’s a cost to them; and the cost now exceeds their calculated market penetration benefit. Gets them out of any tax complications in the US, collecting a W-9 with tax ID etc. I would do the same thing from a business perspective, why should I provide a payroll service for your contractor or employee for free?
Thanks for your reply. I think that co-hosting convenience especially for people like us that try to get from returns on their holiday home that is far away is a great business model for Airbnb. I will write to them to understand what is in their Road-map for that … I would not mind to pay fees to aibnb to facilitate tax and legal bureaucracy with my c-host.
I received this too. This totally sucks! Especially when they were touting the benefits of co-hosting so highly! Anyone have suggestions on how to pay each of us for an easy USA tax season? I just assumed we would each be issued a separate 1099 and could be done with it. Now I have to deal with income tax implications and issuing 1099 to my co-host…which will probably include me now having to incorporate my airbnb income and expenditures into my S-corp, which I’m sue will be a hassle. Anyone figured an easy way to get around this?
I think you coud issue the 1099 (assuming you hit the $600 threshold) under your SSN as a schedule C sole practitioner, or, if you don’t want to advert your SSN, go on the IRS website and get an EIN in your sole practitioner name.