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AIRBNB issued client 1099-MISC for rent

Forum|Forum|6 years ago
March 1, 2020
7 replies
51 views

Why would AIRBNB issue client a 1099-MISC for rent? We do report on Sch E since last year. AIRBNB does not collect the rent, the funds are paid directly to the renter (client). Sorry my 1st question was not clear.

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Best answer by BobKamman

Depending on your account status, the taxpayer information you've submitted to Airbnb, and other factors, you may receive a tax form from Airbnb.

As always, we encourage you to consult a tax professional for assistance reporting your income. If you think you've submitted the wrong information, you can make changes to taxpayer information you've already submitted.

https://www.airbnb.com/help/article/414/should-i-expect-to-receive-a-tax-form-from-airbnb

IRonMaN

Level 15

Because the client received rental income?

Slava Ukraini!

BobKammanAnswer

Level 15

Depending on your account status, the taxpayer information you've submitted to Airbnb, and other factors, you may receive a tax form from Airbnb.

As always, we encourage you to consult a tax professional for assistance reporting your income. If you think you've submitted the wrong information, you can make changes to taxpayer information you've already submitted.

https://www.airbnb.com/help/article/414/should-i-expect-to-receive-a-tax-form-from-airbnb

C

CVTSAuthor

Level 4

Thank you.

abctax55

Level 15

Why wouldn't they?

HumanKind... Be Both

T

ttw

Level 2

Assuming the client has a rental or rentals they are offering via the AIRBNB platform then it would follow that since the renters pay AIRBNB who, in turn, remit to the owners (your client), the income would be reportable. The issue will be whether or not it is reported on taxes as rental (passive) income or misc income which is generally non-passive. As I understand it the general rule of determining whether it is passive or non-passive income depends upon the amount of time the taxpayer spent on the activity and whether that the taxpayer "actively" participated in the rental activity - all of which will impact how the rental losses can be deducted. That determination will need to be made by the taxpayer since AIRBNB (or any rental agency/platform) would not be able to make that determination. Hope that helps somewhat.

sjrcpa

Level 15

@ttwAll rentals are passive. The issue for Airbnb income is whether to report on Schedule E as a rental or on Schedule C s a business.

The more I know the more I don’t know.

abctax55

Level 15

What @sjrcpa says...

Where the income is reported is dependent on the extent of services provided to the renters. And the answer isn't always black/white.

HumanKind... Be Both

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