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Updated over 3 years ago on . Most recent reply

User Stats

21
Posts
4
Votes
Justin P.
  • Contractor
  • Fayetteville, AR
4
Votes |
21
Posts

STR taxes “Hotel Motel” or “Longterm rental”

Justin P.
  • Contractor
  • Fayetteville, AR
Posted

Thank you in advance for your insight here. I am wanting to go through my cities “zoning” process to get an Airbnb going. As part of this process they have a mandatory requirement of reporting monthly statements on your rental income PLUS paying a 2% Hotel/Motel tax to the city. Is this legal if I am not providing Hotel/Motel services as described by the tax code? I am wanting to structure this as a long term rental tax designation but if I am paying to the city a mandatory “Hotel/motel tax” and then claiming that as an expense on my tax return, will this not complicate matters as to filing in the “long term rental” designation?

Most Popular Reply

User Stats

21
Posts
4
Votes
Justin P.
  • Contractor
  • Fayetteville, AR
4
Votes |
21
Posts
Justin P.
  • Contractor
  • Fayetteville, AR
Replied

@Ashish Acharya

Ok! Thanks for the clarification. I am a newbie at this, very glad for this forum and your response..

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