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When I first started, I read somewhere that Airbnb was in the legal limbo (apparently they were wrong) so I kept earning money without realising I was gonna be in trouble.
Now I’ve recieved an Email from Airbnb reminding me to pay taxes. Imagine my face when I did the math…
So, do you guys pay taxes? Will they find out if I don’t, I mean does Airbnb give them my financial information?
Thank you
Be sure to pay taxes as required. It can be a shock when you find out just how much of your perceived income is actually due in taxes.
It’s a matter of time before someone finds out. When one party finds out (national/state/province/county/city) they all communicate with each other and then each will be anxious to get their piece of the pie. We get taxed in four ways. The federal and state governments tax the income as earnings. The state takes a sales tax. The county collects a transient occupancy tax. Finally, the licensing fees here are based on the previous year’s revenue.
Just keep in mind you can earn £7500 tax free under the rent a room scheme, and if you go over that amount you can opt out and deduct expenses (but only is if works out cheaper to do so).