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Renters and the IRS


#1

I am just wondering if those who are renters need to pay tax to the IRS? If you take on extra roommates as renters you do not need to report that income, why should it be different with airbnb. Thanks


#2

Income tax, self-employment tax, sales tax, occupancy tax.

What is your source for the information about not paying tax on rental income from roommates? If you are sharing expense, most likely not, but short-term renters are income, and this is a business.


#3

Would i get to pay less income tax if I paid the entire rent? No. But according to you I should pay more in taxes when I share the house.If I sublet to 5 people I should pay all the tax and none of them should pay anything? We would all be paying the same amount of money for the same amount of space but since I am on the lease I should consider all this as my income Seems crazy.don’t you think? I certainly have never heard a landlord say well you know if you get another roommate you will need to pay the IRS Have you?


#4

Also if it was not clear, a new roommate, or airbnb guest, could just can just send their check to the landlord.That is not income. That is individuals deciding how to divide the resources of the dwelling, and how to structure ‘the’ payment for that privileged No one is gaining an income


#5

Matt G… Sorry, but you sound a bit naive…I wonder if people who have never heard of a 1099 are getting the surprise of their lives at tax time? When you signed up for AirBnB… you forked over your social security number? Correct? That’s so they can report your earnings to the IRS.

YES… Heads up here!!! Your AirBnB income is taxable.

A typical roommate situation might involve cash transactions that are agreed upon between the roommates. But if you are renting your rooms or home on AirBnB, you’re getting income and it is taxable. If I’m a landlord, income from my long-term renters is taxable. DC is right… You’ll also pay self-employment tax, which is hefty.

Bottom Line… You will are getting reported to the IRS and will receive (or need to download) a 1099 from AirBnB in January. It’s Misc. Income and is taxable. In case you are not familiar, a 1099 will show what got reported to the IRS. The total earnings for the year is also going to be in your Air account transaction history. If it’s under $600 you don’t have to report. If it’s over you do… See an accountant perhaps but if it were me, I’d be keeping track of expenses so you can write it off on a Schedule C. (Business) Don’t get caught off guard at the end of the year. You’ll owe tax so be prepared!


#6

konacoconutz So yes thank you for that warning, but we have already paid our tax. Nevertheless i am going to suggest my original question stands, as i remain a little unconvinced that you know for sure that renters , as opposed to homeowners, are required by the IRS to pay tax . And again, the reason I draw this conclusion is that renters adding extra roommates does not create income, whereas it does for homeowners. So when you say DC is correct, I hope it is not regard to that point


#7

Matt…OK…not quite sure I follow… When you say “renters”… do you mean you are renting the house in question and doing AirBnB? If you are renting out anything on AirBnB (whether you own it or rent it) it is under one person’s individual account and they are going to report that income to the IRS under your social security number. If you don’t want to get reported, or feel like everyone should share in paying the tax, you should just stick to having roommates and not do AirBnB.

On 1099 Misc. income…you are presumed to be self-employed and thus owe self-employment tax. This is your payment to social security. It’s high. I can attest to this because I’ve been self-employed a good portion of my career. When you work for an employer, the employer pays half and you pay half. When you are self employed, you pay all. Correct me if I am wrong, @cabinhost, (who knows much more as she is about to become a CPA. )

I’m not sure if I have been too helpful MattG… but taxes are the reality… In Hawaii we have to collect the TAT on top of excise, but that’s a whole other different sort of tax. Your local tax authority could answer as to whether or not you owe accommodations tax.


#8

konacoconuts To answer your question yes I am renting a house and subing a room. I don’t want to beat a dead horse, but this is not just about my trying to get out of paying taxes. It is also about the principles involved and the consistency of owners paying taxes on rental income and renters not paying such taxes. Thanks


#9

Well. Just wondering if you have a clause in your lease that prohibits subletting? Does your landlord know you are doing this Air BnB renting , and I assume you have his or her full permission to do so? Most landlords would NOT be OK with this. Most would evict you if they discovered you subletting in violation of your lease and would be within their rights to do so. . I know I sure would. The landlord gets zero benefit from you renting his place on AirBnB and yet assumes all of the liability.

Not trying to preach at you, just sayin.’

Still not sure I understand the “principles” that are bothering you.


#10

Somebody just crossed the line. You have no business speculating about my particular situation and your sissy little threats


#11

Turned out you were naive since you jumped to the "WRONG’ conclusion that I had not paid my taxes. This would latter become a missed warning sign that you were capable of jumping to all kinds of false conclusions.I should have seen it coming, but I try to give people the benefit of the doubt. You might try it sometime


#12

Whatever. I never said you didn’t pay your taxes. Your question was ridiculous and I was trying to answer you. What does your lease actually say? Can you sublet? Does your landlord know?

You were the one who put your lame question on this forum to begin with. Get a clue. If you are renting on AirBnB in violation of your lease you could be out on your bum in 30 days.

Don’t kill the messenger. It is what it is.


#13

I assume you read the suggestion to have constructive conversations?.Do you think you have some online want to be cop badge or something?


#14

You can’t even answer my question It is clearly beyond your ability to abstract. You know A follows B and all that stuff those logical folks talk about

And as it turns out we can move into my wife’s elderly parents very large home that we will inherit anytime we want. We have done an incredible amount of work to our place, much of which i can pack up with me if I so choose when I leave. So the landlord needs to be nice to me. I do not live in the little fearful world of bullying landlords that can pretend they can intimidate you. I imagine that chaps your lording over hide, eh?.

Further, the room in question has been completely remodeled by me.I am talking thousands of dollars worth of work It is now maintained at a higher level than it would ever be if we did not have airbnb guests. So he is indeed benefiting from having airbnb here. Is your nosy ass happy now?


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