Airbnb Hosts: Tips for Tracking and Reporting Your Rental Income

Founded in 2008, Airbnb is a marketplace for people to list and rent unique accommodations around the world. It has grown in popularity over the last few years and presents many tax reporting questions for hosts who are earning money from renting out their homes.  Here are some tips for reporting income from Airbnb.

First and foremost, hosts should keep detailed records of all income and expenses. This will be helpful not only for you and your tax preparer, but vital in the case of an IRS audit.  Some typical expenses that a host may incur would include advertising, cleaning and maintenance, utilities, home owner’s insurance, property taxes and interest on loans and mortgages. You should not rely on Airbnb to issue you a tax form for your income earned.  Airbnb only issues 1099s if someone meets one of the following criteria:

  1. US persons who have earned over $20,000 and had 200+ reservations
  2. Non-US persons who have submitted a Form W-8
  3. Hosts that had funds withheld from their payouts for taxes

It is also important to note that owners might not have to report any Airbnb income on their tax forms at all if their residences are rented out for fewer than 15 days per year. This has become popular for events where hotel rooms might not be available, like in Dublin, Ohio during the Memorial Tournament or Cleveland, Ohio during the Republican National Convention.

As always, consult your tax advisor with any questions you have about reporting Airbnb or any other rental income.