If you own an Airbnb in Miami and live in Colombia, you could be overpaying taxes in the U.S.
At My Accounting Now, we believe in empowering business owners with the knowledge and tools they need to thrive. Our blog serves as a resource hub, offering insights into critical aspects of business finance, from effective bookkeeping practices to strategic tax planning. By staying informed and proactive, business owners can avoid common pitfalls and leverage financial strategies to fuel their growth and success.
If you own an Airbnb in Miami and live in Colombia, you could be overpaying taxes in the U.S.
2026-06-19
And the worst part: without even realizing it.
Many investors do the basics: they receive income, file their tax return… and assume everything is fine.
But in practice, we see constant mistakes:
- ❌ They pay taxes on gross income
- ❌ They don't choose the tax option that allows them to deduct expenses
- ❌ They're unaware of how Airbnb-type operations change their tax treatment
- ❌ They believe that having an LLC automatically optimizes their taxes
The result: they end up paying more than necessary or taking unnecessary risks.
Here's the key:
- 👉 As a nonresident alien, your income may be subject to a 30% withholding tax on gross income.
- 👉 But there's an election (Section 871(d)) that allows you to pay taxes on net income.
- 👉 And if you correctly apply deductions like depreciation, maintenance, and management, the impact can be significant.
Furthermore, if you operate your Airbnb with additional services, the IRS may treat it as a business activity, completely changing the tax implications.
It's not the Airbnb itself that determines how much you pay; it's how you structure and report it.
At My Accounting Now, we help investors living outside the U.S. avoid costly mistakes and optimize their tax burden strategically.
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