Tax headaches hit AirBnB hosts

Newly-proposed hotel tax could tack additional 14.7 percent charge onto Airbnb rentals

TRD New York /
Apr.April 15, 2014 03:20 PM

Tax season is particularly vexing for freelancers — especially for the growing population of professional AirBnB landlords, according to a report.

Cash-strapped New Yorkers are increasingly turning out their apartments on the hospitality website as a main source of income — more than 8,000 city-dwellers were relying on income from AirBnB to pay housing costs as of the fall of 2013, according to a report released by the company that was reviewed by Vice.

The cash flow has been a stroke of luck for folks looking for extra cash, but hosts will have to fork over a percentage of their earnings by April 15, tax experts told Vice. How much hosts are required to pay can vary wildly according to state and metropolitan area, and an additional hotel tax looms in New York, where a proposed bill could have hosts charging renters an additional 14.7 percent as early as this summer, according to the New York Post.

Some who garner additional income via Airbnb are attempting to stem the impending cash hemorrhage by itemizing deductions, such as new furniture, appliances or other amenities that brighten the appeal of a space to tourists. But unless such fixtures are regularly used, such as air conditioning units, they don’t qualify for deductions, Vice reported. [Vice] and [NYP] — Angela Hunt

(Taxes photo from Shutterstock)


Related Articles

arrow_forward_ios

SoftBank taps former Sprint CEO to fix WeWork, this borough could house Trump’s presidential library: Daily Digest

Fisher Brothers' Winston Fisher and 55 East 52nd Street (Credit: Getty Images)

Airbnb investor takes more pricey office space on Park Avenue

Senator Brad Hoylman and Billionaires' Row (Credit: StreetEasy, NY Senate)

Pied-à-terre tax to make a return in Albany, lawmakers say

From left: Mayor Bill de Blasio, 54 West 39th Street, 62 Grand Street, and 208 West 30th Street (Credit: Google Maps)

The Airbnb crackdown continues: City targets three more buildings

From left: New York Governor Andrew Cuomo, New York State senator James Sanders Jr., and New York City Mayor Bill de Blasio (Credit: Getty Images, iStock, and NY Senate)

“This program will either be a boom or a bust:” State senator has plans to redesign Opportunity Zones

212 Fifth Avenue and Jeff Bezos (Credit: StreetEasy and Getty Images)

June was the best month ever for New York’s luxury market. July is another story.

Sonder CEO Francis Davidson and 20 Broad Street

Airbnb competitor Sonder says after new funding round it’s now worth $1B

Mayor Bill de Blasio and Stanley “Skip” Karol, an Airbnb host (Credit: Getty Images and Youtube)

Airbnb host narrowly clears hurdle in First Amendment claim against city

arrow_forward_ios