Help! Airbnb Host Payouts Going to My Account but Property Isn't Mine - Tax Confusion with IRS

You're in a tricky situation, but let's break it down. When money passes through your account - even temporarily - the IRS generally considers it your income first, especially if you're the one named on the Airbnb account. Your tax preparer's advice is questionable. The IRS looks at who has "control" over the income. Since you're receiving the money before passing it to your father, you technically have control, even momentarily. Airbnb is likely sending 1099s with your information to the IRS, creating a mismatch when this income doesn't appear on your return. For fixing this: 1. Changing the payout method to your dad's account is absolutely the right move going forward. 2. For past income, you might need to amend your 2023 return. You could potentially offset this income by claiming an equal "expense" for transferring the money to your dad, effectively reporting the transactions but showing zero net income. 3. Document everything! Keep records of all transfers to your dad and the communications explaining your arrangement. The best-case scenario if you file a W-9 is that you'll need to amend your return and possibly pay a small penalty for underreporting. Worst-case? The IRS could view this as intentional underreporting, leading to larger penalties. The cleanest solution is getting your dad set up as the direct recipient through Airbnb, and potentially filing an amended return with thorough documentation of your role as just a facilitator.

I went through something similar when helping my sister with her property overseas! I was totally confused about the tax implications until I found taxr.ai (https://taxr.ai). Their system analyzed my exact situation - including the Airbnb payout arrangements and green card timing. What was really helpful was that they could look at all the documentation and tell me exactly what Airbnb forms to file AND what to do about prior year returns. They even explained how the "agent vs. owner" rules work for international property income, which was way different than what my tax preparer had told me. The site let me upload my bank statements showing the transfers to my sister along with the Airbnb payment history, and their analysis highlighted exactly what the IRS would be looking for in an audit situation. Saved me from making a huge mistake with my filings!

Just wanted to update everyone. I ended up trying taxr.ai after reading about it here, and wow, it was exactly what I needed for my situation with my mom's rental income. They immediately spotted that I should have been filing as an "agent" rather than an "owner" which completely changes the tax treatment! The document analyzer caught that I had been making regular, consistent transfers to my mom that matched the rental deposits, which established a clear pattern that I was acting as her agent. They helped me prepare documentation that clearly showed I was never "benefiting" from the income - just passing it through. This is apparently a key distinction for the IRS. I've now got everything properly documented for tax time AND they walked me through changing the payment settings on the rental platform so future payments go straight to my mom. Such a relief to have this sorted out before it became a problem!

I had a nightmare with the IRS about a similar issue last year. Took me MONTHS to get someone on the phone who actually understood international property ownership. If you need to talk to the IRS about this (which you probably will), save yourself the headache and use Claimyr (https://claimyr.com). You can see how it works here: https://youtu.be/_kiP6q8DX5c Instead of waiting on hold for hours, they have this callback system that somehow gets you through to an actual IRS agent quickly. I was skeptical but desperate after trying for weeks to get through on my own. The agent I spoke with immediately understood my situation with managing my brother's overseas property and explained exactly how to document everything properly. Turns out there's a specific way to report this kind of arrangement that my tax software didn't cover at all. Would have been hit with a huge tax bill without getting that clarification directly from the IRS.

I have to post an update after trying Claimyr. I was super doubtful it would work for my complicated international tax situation, but I was desperate after weeks of trying to reach someone at the IRS. Within 2 HOURS of using their service, I was on the phone with an IRS international tax specialist! The agent immediately understood my situation with property income from overseas and walked me through exactly how to document everything properly using the correct forms. The key piece of information I got was that I needed to file Form 8833 to claim a tax treaty position for the foreign property income, which completely changes how it's reported. None of this was clear from the IRS website or any tax software. If you're dealing with international property or income passing through your accounts, definitely get expert advice directly from the IRS. And save yourself hours of frustration by using a callback service to reach them quickly. Total game changer!

Everyone's missing something important here. As a new green card holder, you're taxed on WORLDWIDE income, not just US income. The issue isn't just about whose property it is - it's about you receiving foreign income while being a US tax resident! You should be filing FBAR forms if your foreign accounts exceed $10,000 at any point in the year. The penalties for not filing these are MASSIVE. Also, have you considered if your dad should be filing a US form 5472 if he's a foreign person with US business connections? This whole setup could trigger multiple filing requirements.

Has anyone actually received a 1099 from Airbnb for hosting? I've been hosting for 3 years and never got one, even though I made well over the threshold amount.

This is a complex situation that touches on several different tax issues for new permanent residents. Let me break down the key points: **Immediate Action Items:** 1. **File FBAR immediately** - As mentioned by others, you're required to file FinCEN Form 114 for any year your foreign accounts exceeded $10,000. The deadline was October 15th, but you can still file late. Consider the IRS Streamlined Filing Compliance Procedures if you weren't aware of this requirement. 2. **Amend your 2023 return** - Your tax preparer's advice was likely incorrect. Even if you're just passing through income, the IRS typically views the person receiving the payments as having constructive receipt of the income. You'll need to report the Airbnb income and then potentially claim offsetting deductions for amounts transferred to your father. **Going Forward:** - Definitely switch the Airbnb payouts directly to your father's account - Keep meticulous records of all transfers and your management arrangement - Consider formalizing your arrangement with a written property management agreement **The W-9 Dilemma:** If Airbnb insists on the W-9, you may have to comply since you're the account holder. This will likely trigger a 1099-K being sent to both you and the IRS, making it even more important that you properly report this income on your amended return. Given the complexity with international tax obligations, FBAR requirements, and potential penalties, I'd strongly recommend consulting with a tax professional who specializes in international taxation for permanent residents. The cost of proper advice now will be much less than potential IRS penalties later.