Airbnb Income Situation Need your opinion

[athaureaux6]

Good morning online community, I have this client in NJ who has a two-family house where he lives in one floor and rent the other through Airbnb. The problem is that the daughter who lives in Florida and it is not in the mortgage documents registered herself as a host and received a 1099 from Airbnb. How do you think this situation will play out, she can not deduct the expenses (taxes, repairs, insurance, etc) because she is not running the business. His father will show no rental income. The only thing that comes to my mind is the daughter providing the father with a 1099 NEC so he can include the income from her and deduct the expenses. Any thoughts will be appreciated. Thank you everybody. 

[jeffmcpa2010]

Who actually received the $$$

If the Daughter did not receive the $ than she reports the 1099 income and puts in an expense something like "1099 received belonging to others" and subtracts out the amount.

Father does not need a 1099 to report the income, and daughter is not in business so she does not need o issue a 1099, if I correctly understand the situation.

No one running a business should be reporting their tax situation based only on 1099's they receive. They should be reporting their actual income and expenses, regardless of what 1099's say, and only worry about 1099's unless the 1099's are somehow over reporting their gross income.

[athaureaux6]

Thanks Jeff, I really do not understand when you asked who actually received the money. If you are registered as a host in Airbnb I am assuming she is receiving the money, or don"t? That is why she got the 1099s. Appreciate your input. I even asked her if she needed more income to buy a property or else, because I do not see why she would register that rental in the site under her name. She answered to me that she thought it was not important. Crazy. Thanks again. 

[jeffmcpa2010]

I actually had a friend/client that had a vacation property, and their daughter set up the online stuff and managed that part of it from long distance. The $ still went to their account, they just didn't want to learn and deal with the online part of it. But she did think ahead to at least put it in their name.

That's what made me think of that question. Hope it helps.

[athaureaux6]

Thanks I understand. I asked his daughter if she had the fathers' name was in the 1099 but she said no. It would been easier if she had included his name but she did not. But I appreciate your responses. Have a great day. If you find out something else I will appreciate it. .

[TaxGuyBill]

The daughter receives money into her bank account. THEN what?

1. Does she give it all to dad, who is actually renting the place? 
2. Is she keeping any of it?
3. Does she pay for expenses?
4. Does she actually 'do' anything besides being listed as Host?
5. Is she on the title of the home?

[qbteachmt]

"registered herself as a host and received a 1099 from Airbnb. How do you think this situation will play out, she can not deduct the expenses (taxes, repairs, insurance, etc) because she is not running the business"

In my town, you can rent property, then manage it on AirBnB as income-producing. So, someone made all the tax and interest payments and someone collected rent and someone changes the sheets and does the laundry and takes out t he trash. If all of that is her, she is running a business = Sched C. If she gives him rent or part of the rent or the profit from the operations, that still is rental income to him, but he's not running the business.

[qbteachmt]

I see an update to a topic of the same issue, here:

https://proconnect.intuit.com/community/proseries-tax-discussions/discussion/re-airbnb-when-income-n...