Federal government clamps down on Airbnb, VRBO hosts with new tax measure (2024)

FAQs

Federal government clamps down on Airbnb, VRBO hosts with new tax measure? ›

Federal government clamps down on Airbnb, VRBO hosts with new tax measure. Effective Jan. 1, property owners in areas that prohibit short-term rentals or who are non-compliant with local laws will no longer be able to claim expenses against rental income.

Update to our Guest Service Fee

Starting April 1, 2024, for cross-currency bookings, the guest service fee will include an additional amount of up to 2% of the booking total before taxes. This will be applied when the currency the guest uses to pay differs from the currency that the Host set for their listing.

Form 1099-K reports gross payment transactions processed on your behalf by Airbnb. As a Third Party Settlement Organization (TPSO), Airbnb is required by the Internal Revenue Service (IRS) and state tax authorities to issue Form 1099-K to US citizen or US tax resident Hosts who meet 1099-K reporting thresholds.

You will receive IRS Form 1099-K to report the gross value of transactions processed on your behalf. Vrbo mails Form 1099-K in late January of each year. Note: For more information about Form 1099-K, read Understanding Your Form 1099-K.

Why is Airbnb Illegal or Restricted in Certain Places? Some localities have outlawed or put restrictions on Airbnb hosting for several reasons. One is that it takes away tax revenues (although now Airbnb works with cities to collect such taxes), or siphons business from traditional hotels that do pay taxes.

Such data enumerates how Airbnb contributes to the lack of availability of housing for others to purchase. The lack of housing options combines with the soaring prices of rent individuals face, leaving hopeful homeowners with an insurmountable obstacle: pay more to rent while trying to save for a home.

The decline in Airbnb revenue can be attributed to various factors, including market saturation, financial constraints, and increased availability of Airbnb rentals. As more properties have been added to the platform, the market has become saturated, leading to a slowdown in revenue growth.

In jurisdictions where we're liable, we collect lodging taxes from the guest when they book, and we then remit the taxes to the appropriate taxing authority either monthly, quarterly, or annually.

Accordingly, Airbnb will only issue Form 1099-K to Hosts who have exceeded $20,000 and exceeded 200 transactions (in aggregate) for calendar year 2023, or if your resident state has a lower reporting threshold. The IRS further announced its plan to provide for a threshold of $5,000 for 2024.

Airbnb hosts are expected to pay income taxes on rental income they earn from long-term rentals. To account for short-term rental income, the 14-day rule allows Airbnb hosts to avoid paying taxes if they rent a property for fewer than 14 days per year.

Why I no longer use Airbnb? ›

But over the past few years, the appeal of using Airbnb has been diminishing. Due to exorbitant cleaning fees, the stress of having to coordinate with hosts, issues upon arrival and the opportunity to stay in hotels for much less, many travelers have now sworn off the site.

Though Gerli believes “more seasoned Airbnb operators who got in before the pandemic” may be able to hang on, “newbie” owners, who paid more for their properties at higher interest rates, may be in trouble. Facing thin margins, that could lead to a wave of forced sellings.

The city adopted Local Law 18, which requires hosts to register with the city or face stiff fines, in 2022, but enforcement didn't begin until September 2023. Experts say the change has already reduced the number of short-term rental units in the city.

2024 Summer Release: Airbnb introduces Icons—extraordinary experiences from the world's greatest icons. Airbnb is introducing Icons, a new category of extraordinary experiences hosted by the greatest names in music, film, television, art, sports, and more. Icons let you step into worlds you've only ever dreamed of.

The 2024 Summer Release from Airbnb presents a promising array of features aimed at elevating the hosting and guest experience alike. From the introduction of Airbnb Icons to the array of new features for group trips and significant upgrades for hosts, these changes are set to make a substantial impact on the platform.

Airbnb's 2024 strategy is officially the same as 2023: More hosts, better core product, expand beyond the core. Yet, after several years focusing on the first two strategic pillars, it looks like 2024 will see Airbnb start expanding its wings further away from short stays and travel.

Airbnb announced a handful of updates to its platform on Wednesday, with CEO Brian Chesky billing it as “the biggest change to Airbnb in a decade.” The features, announced during its virtual summer event, include a new way to search, the option to split stays between homes and additional guest protections.