As a host in the ever-evolving world of short-term rentals, understanding the intricate landscape of US tax law is essential. Whether you're renting out a room in your home or managing multiple properties, compliance with federal, state, and local regulations is crucial to ensure a smooth and profitable operation.

Federal Tax Considerations

At the federal level, the IRS treats income from short- term rentals as taxable. Hosts must report all income received, regardless of whether the rental period is for one night or several months. However, you may be eligible for deductions, such as mortgage interest, property taxes, and expenses related to the upkeep of your rental space. It’s important to maintain accurate records to support your claims.

State Regulations

In Oregon, short-term rental hosts must comply with specific state laws and tax requirements. One key aspect is the requirement to collect and remit the state’s transient lodging tax, which is currently set at 1.5% on rental income. Hosts must also register their short-term rental with the Oregon Department of Revenue, ensuring that all income is reported appropriately. Failure to comply with these regulations can result in significant fines, so it's crucial to stay informed about both state and local laws.

Local Ordinances

In the city of Portland, hosts must adhere to several, additional lodging tax requirements. Specifically, the local transient lodging tax applies on short-term rental income. Hosts are responsible for collecting and remitting this tax to the city. If you are listed exclusively on Airbnb, these taxes are remitted directly on your behalf.

Get Informed!

To help hosts navigate these complexities, Host2Host is excited to announce an upcoming online webinar where experts will provide insights into tax laws specific to short-term rentals. Join us to learn about your responsibilities and how to maximize your hosting experience.

Stay informed, stay compliant, and make the most of your hosting journey!

Register for our Tax Time Technicalities Seminar on November 14, 2024.