Need Tax advise on split ownership
Hi all,
Me and my friend just bought a house upstate New York for a STR. We want to get it online but last pending piece is tax information. Airbnb only allows one listing host and other person has to be co-host. It seems however that only listing host gets full tax document and co-host only gets income provided by listing host. In this scenario say for example :
For Listing host :
Income : 100$
Expenses : 50$ (Co-host payout, lets ignore Airbnb fees for now)
Cohost :
Income : 50$
In this scenario wouldn't the listing host have an advantage as they get to report expenses on income compared to Cohost ? Any certified CPAs in forum or any advise is appreciated.
Most Popular Reply
@Dhruvrajsinh Parmar Airbnb doesn't dictate how income and expenses should be reported on this short-term rental - the IRS does. The IRS requires that the income and expenses on rental be split based on ownership unless there is another legal agreement or entity structure that overrides this.
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*This post does not create a CPA-client relationship. The information contained in this post is not to be relied upon. Readers are advised to seek professional advice.