Hello my good people. I am the Airbnb Tax Wizard, and I am appearing to you at this most magical time of year.
What’s that you’re saying? The holidays? No, my fair folk, MUCH more enchanting than that: it’s tax time! This is when I materialize to make sure you’re spellbound – with important tax information!
The first thing I will do is cause an email from Airbnb to appear in your inbox. I do this because I want to make your filing easier.
Next, I want to tell you a tale of three things: income tax, deductions, and the people who can help you during this time.
Unless someone has turned you into a newt (which I might be able to help with), you are aware that almost every nation asks you to pay taxes on your income.
I truly hope that you have been blessed with showers of gold thanks to your involvement with Airbnb. As with your other streams of wealth, you may have to give some of this to the tax collector.
Because you are wonderful, I shall wave my wand and automatically allow you to view an estimate of your earnings on your Dashboard, under Transaction History. Presto!
Ah, but this is just an ESTIMATE, you say? Indeed! However, I have just the spell for you. At the end of the year, I will send you IRS Form 1099, Form 1042, or both – and they will marvelously have the correct numbers. Huzzah!
If you live in the United States, several spellcasters have put together some resources just for you at the IRS website. You can gain sage knowledge on how income derived from properties is treated.
A skilled wizard knows about making things disappear. Many countries let you do this via tax deductions.
If you wish to achieve archmage status, you must look into the resources available to you. One page I have my eye on is this IRS deduction topic page.
Help from the masters of tax magic
As a true practitioner of the mystical arts, I am unable to divulge the fay secrets of specialized tax knowledge. To even attempt to do so would risk the wrath of my overseers. Moreover, as different states, counties, cities, and nations in the realm have drastically different rules, you might have to view your castle as a business or even a hotel.
There are those who are uniquely able to serve you in your quest. They are called “tax advisors,” and they are the only characters who will be able to give you specific, credible wisdom.
Your most powerful weapon in your quest for the Tax Grail is your knowledge. May you expand it as greatly as possible.
(The legal mages say: Nothing in this blog post should be construed as tax advice, and you should consult your own advisor.)
May fortune favor you.