Vacation Rental Taxes ?
The Vacation Rental movement took the hospitality industry by storm once Airbnb made it main stream. Companies like homeaway and other have been around longer, what Airbnb did was make it easy and user friendly ..meaning anyone with an extra airbnb, sofa-bed, room or house can make money from renting their space almost effortlessly.
In other words the service was made for the masses but the tac collection part was an after thought. Which makes sense, when it became an issue they where big enough to adjust but you still have to do your part.
Here is a quick summary of how the taxes work on some of my favorite sites:
Airbnb- Collects 7% or Sales tax (Your still responsible for the Hotel tax aka resort tax also know as bedding tax. Depends what city your in but i suggest you look it up.. every reservation you take is a little deeper of a whole your digging by waiting.
Who pays what ?
The examples below is based on Florida' Miami-Dade County.
Airbnb- 7% Sales taxa (Remits to the IRS) You will have to pay the 6% Resort tax from the reservation.
TripAdvisor-13% (You can set how much you want to collect ) You will receive the tax money with you payout so set it aside for monthly tax payments.
Homeaway- 13% (You can set how much you want to collect ) You will receive the tax money with your reservation payout so set it aside for your monthly taxes.
The IRS have been working closely with the Rental Sites to make sure they are accurate it is best you do the same.