2. Taxes
Make sure you pay all applicable taxes. Your short-term rental income will be subject to a variety of taxes, including sales and occupancy taxes. Airbnb has tax remittance agreements with several cities. In these cities, Airbnb collects and remits local occupancy taxes on your behalf. If Airbnb does not collect occupancy taxes, you are responsible for collecting and remitting them. Make sure that you know all the taxes that apply to your business.
Make sure you understand all applicable taxes and who is responsible for collecting and remitting taxes to the IRS and your state and local jurisdiction.
Make sure you know from the outset what your tax responsibilities are, and that you can answer all of these questions:
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What taxes apply to my business?
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Do I need a special license or permit to collect taxes from my guests?
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Am I responsible for collecting taxes, or does Airbnb do it for me?
Many local jurisdictions require an occupancy tax, also know as a room tax, lodging tax, hotel or tourist tax. Tax rates vary by location. Loner stays are usually exempt from this kind of tax.
Airbnb automatically collects and remits occupancy taxes in many locations. Currently, Airbnb collects and remits taxes for the locations found here.
TAX
Tip
Unlike personal income tax, local occupancy and sales taxes are due monthly, not once a year. Make sure you research your tax obligations and don’t wait until April to start thinking about paying your taxes—you may be forced to pay late fees and interest.