IMPORTANT: For those who receive AirBnB payouts via their PayPal (or other platform) accounts!

[JJD]

@SWLinPHX

But I guess what you’re saying is that a 1099K is more of a record of every transaction the service makes in our name, and every charge and fee involved in that transaction, even if it did not go to or benefit us.

Exactly. And it so integral to a 1099 that there is literally a dedicated line on both Sched C and E to report “Commissions and Fees” as an expense.

It’s all about documentation so the IRS wants to see all of those details.

@SWLinPHX

Schedule C as a sole proprietor business. Is there a benefit in filing Schedule E as well? I thought it was just one or the other.

It’s not a matter of benefit, either Schedule C is the correct form or Schedule E is the correct form depending on the details.

But it is possible to need to file both if you have different activities. My Airbnb 1099 goes on Schedule C as a business activity but my apartments-com 1099, which is rent/deposits/fees received from tenants, goes on my Schedule E as a rental activity. My point being that either way there is a place to deduct commissions and fees because payments reported on 1099s so commonly include them even though they are expenses and not income.