All Forum Posts by: Josh Madigan

I use MyLodgeTax (Avalara) to assist in my collection and remitting of state taxes for my Cabins in Gatlinburg and Sevierville. I'm not sure I am collecting the correct amount from Airbnb.  According to Avalara, Airbnb collects and remits state and county sales tax and I should only collect the additional 3% hotel tax (or 3.19 if I include license renewal fee) This all makes sense.  What's unclear to me is how to set this up properly on Airbnb.  It looks like they have a default setting which collects the proper state and sales tax like Avalara says.  But in order to add the additional 3% to be collected, I have to switch to Airbnb's "Custom" setting and manually add the taxes.  My question is do I just add the 3% hotel tax, or do I have to add ALL of the taxes? Does Airbnb no longer collect and submit any taxes on their own if I choose "Custom"? I currently have manually added all of the taxes and am worried that I am double collecting.  I've attached a pic to show how I have my Airbnb set up.  Does anyone who manages a similar situation have any advice?  Thanks!

I would close into the LLC if you have the option. That's what I do with my properties. I also think you (and me) should be exempt and don't have to pay this tax.

There’s a lot of contradictory and misinformation out there on this subject but this is from the TN.GOV website 
See:

https://www.tn.gov/revenue/tax...

My strategy from the beginning was to seek larger properties for a few reasons.  Your ratio of expenses to $ invested is much more favorable on a larger property vs multiple smaller properties.  I also knew I wanted to buy multiple properties and eventually self manage so fewer, larger properties was much more appealing from a time commitment perspective.  Whereas @Johnny Duray seems to of closed his deal at the perfect time, I purchased my first property at close to the worst possible time, beginning of December 2019.  The first few months were rocky but since June the place is at 100% occupancy giving me the confidence to pull the trigger on another a slightly discounted deal that was put on hold through Covid March-June.  The second property is a new construction 6br pool cabin that I'm excited to list in the coming days.  Shoutout to @Avery Carl for helping me navigate all of this through these crazy times.

@Johnny Duray Great to hear it's going so well! Do you mind sharing who your cleaners are for your pool cabin? I'm a new investor in the area and the cleaners I've been using seem like they're a little overwhelmed, it's making me nervous.