Airbnb rental sales tax vs. income tax self employed

Forum|Forum|3 years ago
February 23, 2023
1 reply
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I am self employ and have cottage that I rent through Airbnb. Airbnb collect sales tax and pay my state and county. I am assuming that I will need to declare that same rental revenue and file Schedule C for rental and pay income tax, is that right?

Not A Product Question

JulieS

Yes, you have to report your Airbnb income either on Schedule C or Schedule E, unless it was rented out for 14 days or less during the year.

If your Airbnb was rented 14 days or less during the year, you report the income as "other income" and you don't deduct any related expenses. Click here for more details.

If your Airbnb was rented for more than 14 days during the year, you report the income on Schedule E and deduct your rental expenses.

If your Airbnb was rented for more than 14 days during the year and you provided "substantial services", you report the income on Schedule C and deduct your business expenses.

Substantial services go above and beyond the basic services typically provided to renters (utilities, maintenance, landscaping, trash collection, etc.). If you’re providing regular cleaning or maid service (in excess of 10% of the rental cost), fresh linens or towels, in-room coffee, transportation, or sight-seeing, you’re providing substantial services, and that means you'd file Schedule C.

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Ru771

I had a follow up question on this.

I have entered the info on Schedule E for all income/expenses for airbnb.

As per the previous post do I add the local sales taxes paid by airbnb on my behalf to my rental expenses? If so where in the schedule E in TT do I add them? Thank you!!

SharonD007

Yes, you would add the occupancy taxes that Airbnb paid in your behalf as an expense. Follow the instructions below to enter the taxes.

Launch TurboTax
Select Wages and Income
Type rental property in the search box at the top and select jump to rental property
Select your rental property or add the rental property
Scroll down to this box and select

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