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Comment by mapleoin | Hacker News Reader

One thing that has always puzzled me about AirBNB is that there's no mention anywhere about taxes. All this money changing hands without being taxed sure seems weird. Renters usually pay taxes for the rent they get, shouldn't people doing this on AirBNB do the same?

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In the US, you have an obligation to pay taxes on income, regardless of whether you get it in a traditional fashion or from a new economy web 2.0 social networking service, regardless of whether it is in cash or electronic, and regardless of whether the government is aware of it or not. Compliance with this is... mixed.

Airbnb follows its legal obligations to report monies which it disburses to hosts, which will in almost all cases constitute income, via a 1099 (or similar) form delivered to both the host and the IRS.

see: http://www.airbnb.com/help/question/122 , conveniently located near the top of the search results for [airbnb 1099] (if you knew the probable way they were going to report) or [airbnb taxes] if you didn't.

When it comes tax time, isn't it the individuals responsibility to report all their income?

You've been indoctrinated. Get help!

This is no different. The onus is on the person renting out their property/room to declare rental income and remit the appropriate taxes.

On a side note, it breaks my heart to read "all this money changing hands without being taxed sure seems weird."

On a side note, it breaks my heart to read "all this money changing hands without being taxed sure seems weird."

Why? Because you don't like taxes on money changing hands? That debate aside, it doesn't matter- taxes are due, they should be paid.

Do you report All the items you bought online and that you didn't pay state sales tax on? You are supposed to.

On my state income tax form there's an "add this small amount to your taxes and we won't care about you buying normal stuff online" box, which I check each year. So sort of.

I do. I don't keep a list, but I make what I believe to be a fair ballpark estimate.

"Supposed to" is debatable. States do not have authority to tax interstate commerce. They go ahead and ask for it anyway. Although they call it a "use tax," the the tax is calculated solely based on the money that changes hands in an interstate commerce transaction. Looks like a duck, quacks like a duck, has webbed feet like a duck, as they say. It's an interstate commerce tax.

A personal expense does not become a business expense just because a taxpayer calls it that. But states think they can make an interstate commerce tax into a "use tax" just by calling it that.

What's a bit gray-area about it is that unlike someone like Craigslist, AirBnB isn't just a matchmaker, but has inserted themselves directly into the commercial transaction as the point of sale: they, not the property owner, are the ones who not only advertise the property, but complete the booking and charge the credit card. Whether that means they're responsible for filing the taxes is murky, and probably depends on which taxes and which jurisdiction.

No, that makes it less of a grey area, because Airbnb issues 1099s for the money it disburses, and Craigslist obviously can't do that.

May I ask what is heart-breaking about paying taxes?

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