1099-K

Forum|Forum|4 years ago
February 6, 2022
1 reply
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AIRBNB required in 2021 that a W9 be submitted per new IRS rules ($20K lowered to $600). Failure to do so would result in AIRBNB taking 20 percent out of our Timeshare rental income Hosted through them and given to the Government.

I argued that it should be unnecessary because I only own two weeks (14 days) and IRS rule 415 is in effect (https://www.irs.gov/taxtopics/tc415) under Minimal Rental Use*.

Have had the Timeshare since 1983 and over the years have rented it out when we did not stay there. Early on, in the 80’s, I was audited by the IRS for not reporting the income, but IRS dropped when presented with their rule.

Entering the 1099-K for 2021 lowered my Federal Return and increased my CA State Return, making the overall tax liability much, much higher.

By not entering will this trigger (another) IRS audit after filing?

*Minimal Rental Use

There's a special rule if you use a dwelling unit as a residence and rent it for fewer than 15 days. In this case, don't report any of the rental income and don't deduct any expenses as rental expenses.

Best answer by MinhT1

If you rented your timeshare for 14 dys or fewer in2021, you do not have to report the rental income (or any rental expenses).

If this is the case, do not report the form 1099-K but keepit in your records with any proof that the rental was for 14 days or less. This will nt trigger an IRS audit, but you may have an inquiry from the IRS and you will explain that the rental was for 14 days or less.