Airbnb could be banned in Amsterdam

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Airbnb could be banned in Amsterdam: Local authorities are now hunting for illegal hotels - The Next Web http://bit.ly/WMigvw

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PAii response

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Good one!  Thanks for sharing. I can't wait to see if ABC News does a follow up. I doubt it though

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EmptyNest wrote:

Good one!  Thanks for sharing. I can't wait to see if ABC News does a follow up. I doubt it though

I doubt it as well, they sure don't want to show Joe Public they didn't really research before they aired that story!

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its a good response - doesn't make bb owners look like  crazy protectionists more we are worried about tax dodgers and safety

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thing is air B&B is not the problem - its illegal renters - my opinion is use it as a tool to find them and shut them down.

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Actually, they are exactly the problem:

  1. They are set up to hide the name and address, knowingly.
  2. They are not submitting the required tax paperwork.
    1. They aren't reporting to the local tax authorities.
    2. They are required here as in the UK to collect VAT, but aren't
    3. They aren't reporting the income to the government tax department.
  3. In NY state, they actually trying to use lobbyists to get government to change the law. So they know that they are in violation, but doing nothing about it.

The government also isn't scott free. They should be persuing them for the violations of law. They should be going after those that they do catch to the fullest extent of the law, income tax fraud, property tax fraud, illegally running a B&B, VAT fraud.

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Eric Arthur Blair wrote:

Actually, they are exactly the problem:

  1. They are set up to hide the name and address, knowingly.
  2. They are not submitting the required tax paperwork.
    1. They aren't reporting to the local tax authorities.
    2. They are required here as in the UK to collect VAT, but aren't
    3. They aren't reporting the income to the government tax department.
  3. In NY state, they actually trying to use lobbyists to get government to change the law. So they know that they are in violation, but doing nothing about it.

The government also isn't scott free. They should be persuing them for the violations of law. They should be going after those that they do catch to the fullest extent of the law, income tax fraud, property tax fraud, illegally running a B&B, VAT fraud.

Like my situation today, when the accountant told me "the IRS doesn't consider going to the grocery store a reason for a vehicle required for business."  That is my life! Going to the grocery store! They sure as heck don't deliver.

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Joey Bloggs wrote:

Like my situation today, when the accountant told me "the IRS doesn't consider going to the grocery store a reason for a vehicle required for business."  That is my life! Going to the grocery store! They sure as heck don't deliver.

Pay for delivery.... it's tax deductable Laughing out loud

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Exactly! It is not as if they are hard to find. Just go to the site for their locality and knock on the door. Are you licensed? Show me the license. Not licensed? Here is you citation and summons to Court. And if the "owner" is not there, cite the person who is there the way they arrest the "john" in prostitution stings.

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I just saw a FB post from Jay, he is finalizing a response to ABC regarding the segment.  Good.  Hope ABC will do a follow-up giving some better advise.

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That;s great. I dropped his name in my letter to them as well. I hope they do follow up

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Nothing will shut them down quicker then the IRS going after the money. As how do you track expenses etc after the fact? Then penalties and interest. I bet it gets ugly fast.

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How about this USAToday article...

http://www.usatoday.com/story/travel/hotels/2013/02/04/new-york-city-hotel-room-alternatives-apartment-rentals/1890617/

Which doesn't mention that it's illegal in most jurisdictions (New York City and Amsterdam are prosecuting, not to mention other places), that it plays right in to tax evasion and the black market, that people have gotten ripped off on putting in deposits only to find out that the apartment doesn't exist. Not being professionals, they cancel reservations when they get a better offer or need a room for a friend. Etc. Seriously... don't journalists have ANY responsibility to research properly?

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Here's another article on the AirBnB situation in Amsterdam that is probably closer to the truth than the article linked in the opening post (which may have had issues due to being based on a possibly poor translations from a news story originally published in Dutch).  http://www.pcworld.idg.com.au/article/452753/amsterdam_using_airbnb_list...

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So ABC News this evening ran a piece on how to make some extra money in these hard times by re-decorating that empty room and renting it our via AirBnb and such -- no mention of checking on legalities!

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I sent feedback to ABC regarding this segment providing some facts but recommending that they contact Jay Karen of PAii (and provided #) to discuss this matter.   Do the same and pass it on. 

Generic's picture
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One of these days, the IRS will come calling for their due.

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i just saw it and was FURIOUS! they made it sound like all you do is spruce up a room, let air b n b take photos and start collecting the dough! Said you got make 12,000 a year! I never ever made that much! 

I plan on posting a reply tomorrow!

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Harborfields wrote:

So ABC News this evening ran a piece on how to make some extra money in these hard times by re-decorating that empty room and renting it our via AirBnb and such -- no mention of checking on legalities!

I saw this same story tonight too. 

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On a side note, one of our guests this morning asked me about VR B O dot com.  Asked if we had thought to advertise on it.  I told them (in a very nice way) that most people looking on that site are looking for a place they rent the entire home.  THEN I stated, you know 9/10's of these places are not licensed to rent out as a short term rental. 

He said, yes that's what I thought but I sure like the idea. 

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We had a guest ask why don't we do LS? I explained the 50% discount and the 50% commission and I think they understood. I'm only saying this because it frequently seems that guests know how to run the biz better than we do. ;-) 

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Big city near me has tried to win this battle but they don't have the manpower to do so, at least that is what is claimed so the list continues to grow.  Meanwhile they have the manpower to make sure the LEGAL places continue to stay within the laws.....  Spare me!

Generic's picture
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Exactly my complaint. We have lost a fifth of all the legal places already. Their income is dwindling and they don't know what to do about it... other than maybe do their job. Oh... no, it's easier to just complain about it than do something about it.

I'm surprised that the IRS has insisted that income forms be sent out, so they can track the income.

OnTheShore's picture
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The IRS  is ramping up a requirement that Credit Card Processors send 1099-K forms (I think that's the correct designation) to all people/entitites receiving payments (with a copy to the IRS, of course). AirBnB, FlipKey, and the HomeAway juggernaut will likely get caught up in this (to the extent that they are now acting as middlemen and collecting the rent from the travellers on behalf of the home owners/property managers) and thus have to report all payments to homeowners to the IRS. This doesn't address licensing (which is handled by States and municipalities) and local tax collection issues, except to the extent that the States and the Feds might share information.

Madeleine's picture
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I think we have rec'd all of them at this point. And we have sent out all the ones we needed to as well. (1099's that is)

Generic's picture
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Around here, you would get a form for both federal and provincial. Seems hard to deny your illegal activity when you have you receive a tax form for your illegal activity.

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Got mine Saturday.

Generic's picture
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Doesn't get the same press here, but the minister promised to go after all the illegals using not just his department, but the city and the ministry of revenue. Here it's only illegal if it is less then 30 days and there are over 2800 illegal properties around here and 4000 in the province.

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