Occupancy tax collection can be confusing.

If you list with Airbnb, they will collect and remit for you, however, if you are doing some direct bookings, the onus is on you to ensure compliance with local tax requirements. In general local authorities require quarterly filing, so this is not something you can leave to a rainy day once a year – keeping on top of it is a regular commitment.

One thing that’s good about occupancy tax is that the guests are paying it, so this is not a drain on a home owner’s share of the income. However, if you fail to file on time, the penalties can be harsh, so it’s important to be fully aware of what’s involved.

In this episode, Rob Stephens of Avalara My Lodge Tax explains just about everything you need to know about the different taxes you might need to collect from your guests; what local laws and regulations owners should be aware of; the research new owners need to do, and what steps non-residents need to take to comply with occupancy tax legislation in their locations.

Rob was previously a guest on the show in May 2015 and this time around he shares what’s happened with his original company, Hot Spot Tax, since then. With more and more regulations coming into play, being proactive about tax compliance is essential particularly for a new owner or someone planning to invest in this fast-paced market.

On the show Rob shares:

• What a new owner should do to prepare for tax compliance
• The difference between sales tax and income tax
• The five most important things owners should know about filing tax returns?
• How and where to get the information on what taxes to collect
• What non-resident owners need to know about their tax obligations in the US?
• How Avalara My Lodge Tax helps owners to manage their tax obligations?

Links:

Avalara My Lodge Tax

VRS079 – Tax Talk with Rob Stephens of HotSpot Tax (May 2015)