I’m curious to know what other hosts’ strategy is when it comes to paying taxes? Do you pay estimated taxes each quarter/after every visit? Do you wait until tax time to figure it all out? Do you put money aside from each reservation into a savings account to then pay at tax time? Thanks!
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Does anybody have any suggestions?
I opened a new bank account and started this year off by having all payouts and costs of business going to/coming from that account, as well as tracking the taxes much more accurately.
I haven’t found the answers to your questions yet, but once I do find the answers 2016 should be way simpler.
Our accountant recommends paying estimated taxes. Just paid the Jan 15,2016 quarterly.
The state & city have been collecting taxes separately in Tempe, but after the first of the year, the state will collect for both. And because Airbnb will be collecting the taxes for us in 2017, it will be much easier for us as hosts.
And, if you never have guests that stay longer the 30 days, you will never need to worry about the the taxes being adjusted when the guest stays 30+ days. Airbnb will, as far as I know, pay the taxes. It will be interesting to see if they they add the tax to the listing net price of our listing cost so that it will compare to how other sites (VRBO, etc.) collect it.
Happy 2017!
I can’t see how that’s possible.
I understood that the tax that Airbnb collected was more a tourist tax than the tax each individual has to pay. How can Airbnb know each individual circumstance and what an individuals total income is? I’d be careful with this it doesn’t sound right to me …
Hopefully someone with more knowledge in an area where tax is claimed can confirm.
Looks like @Dibot misunderstood the question. OP is asking about income taxes.
Since this question was asked almost a year ago I hope @Dwm86 came up with a solution that their tax collector approved of. Presumably our personal strategies vary from state-to-state, country-to-country accounting to the local regulations.
There are two types of taxes: the business taxes that are paid to your state, county &/or city on behalf of them allowing you to do business & your personal federal income tax, if you are filing as an individual. Airbnb would have no idea of your income standing with the federal government, but they do know what you earn using their rental sight…which is what they collect & report on.
Airbnb does nothing in regard to your personal income tax, although they will send the IRS a 1099 form if you exceed, I believe, $20,000 during the year from your rental income.
I realize this is an old post but any help in understanding this would be great, can’t afford an accountant or tax professional at the moment…I am trying to understand the whole tax thing as I started in January 2019 and will be filing taxes for the first time with Airbnb income. I am definitely under the $20,000 for the year (2019) and will be for sure but does that mean you just don’t report it at all? Or you report it on the schedule E Self- Employment Income / Expenses form as Gross Sales and if there is a loss once expenses are calculated THAT number can be deducted from personal taxable income??? Or not, because it is passive income? This is where I get confused because I believe I fall under the “passive” income but if that’s true then why am I reporting anything at all. LOL just when I think I understand it I’m confused again!
Looks like it’s time. 
You are required to report all income, whether or not you receive a 1099 for it.
There’s a handy guide to the basics at:
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