One of the most overlooked aspects of hosting is understanding taxes and financial responsibilities. As a Foxhole host, you’re earning income, and just like any business, you need to track your earnings, prepare for tax season, and take advantage of deductions to maximize your profits.
This guide will walk you through the financial side of hosting, so you can focus on providing a great experience while staying compliant with tax regulations.
1. Is Foxhole Hosting Considered Taxable Income?
Yes! Any rental income earned through Foxhole is considered taxable by the IRS.
If you earn over $600 per year, Foxhole may issue you a Form 1099-K for tax reporting purposes.
Even if you don’t receive a 1099-K, you are still required to report your rental income on your tax return.
Tip: Keep track of your income from day one! Set up a simple spreadsheet or use QuickBooks to organize earnings and expenses.
2. Understanding the 14-Day Rule (Tax-Free Rentals)
If you rent your property for 14 days or fewer per year, you do NOT have to pay taxes on that income.
This rule applies only if you personally use the home for more than 14 days per year.
If you rent out your home beyond 14 days, all rental income becomes taxable.
Tip: If you’re a part-time host and don’t exceed 14 rental days, you may qualify for tax-free rental income.
3. What Tax Forms Do Foxhole Hosts Receive?
Form 1099-K (Issued if you earn over $600 in a calendar year—used to report your earnings to the IRS.)
If you do NOT receive a 1099-K, you are still responsible for reporting income on your Schedule E (Form 1040).
Tip: Even if Foxhole does not issue a 1099, you are required to report all rental income.
4. Tax Deductions & Write-Offs for Foxhole Hosts
You can lower your taxable income by deducting certain expenses related to hosting. Common deductions include:
Cleaning Services (If you pay for professional cleaning, it’s deductible.)
Property Maintenance & Repairs (Fixing a broken appliance or replacing worn-out furniture? Deduct it!)
Utilities (Electricity, Water, Gas, Internet) (You can deduct the portion used for hosting.)
Mortgage Interest & Property Taxes (If applicable, a portion may be deductible.)
Supplies (Toiletries, Bedding, Towels, Coffee, etc.) (These are business expenses!)
Advertising & Marketing Costs (If you run Facebook/Google ads for your listing, deduct them.)
Hosting Fees (If Foxhole charges a platform fee, you can deduct it as a business expense.)
Tip: Keep all receipts and records for purchases related to your rental—it will make tax time easier!
5. State & Local Taxes (What You Need to Know)
Many states and cities require short-term rental hosts to collect and remit taxes, including:
Occupancy Taxes (Also called “lodging tax” or “hotel tax.” Some areas require hosts to collect this.)
Sales Taxes (If applicable, Foxhole may collect and remit this automatically.)
Property Taxes (Hosting doesn’t change your property tax, but if your home is reclassified as a rental, your rate could increase.)
Tip: Check your local regulations to see if your city/state requires additional rental taxes.
6. How to Track Your Income & Expenses Like a Pro
To make tax filing easier, keep track of everything.
Recommended Tools:
QuickBooks Self-Employed (Best for automatic expense tracking & tax estimates.)
TurboTax (Self-Employed Version) (Helps identify deductions & file taxes accurately.)
Expensify or Google Sheets (Free options to manually track income & expenses.)
Tip: Open a separate bank account for your rental income—this keeps personal and business finances separate.
7. Quarterly Tax Payments: Do You Need to Pay Estimated Taxes?
If hosting is your only source of income, you may need to pay estimated taxes quarterly instead of just once a year.
If Foxhole is a side income and you have a W-2 job, taxes may already be covered by your employer, and you may not need to pay quarterly.
Tip: If you expect to owe more than $1,000 in taxes, talk to an accountant about quarterly estimated payments.
8. What Happens If You Don’t Report Rental Income?
Failing to report rental income could result in:
IRS audits or penalties
Fines or back taxes owed
Legal action in extreme cases
Tip: Always report income properly. The IRS can track rental income through payment processors (like Stripe, PayPal, and Foxhole payouts).
Final Thoughts
Being a Foxhole host comes with financial responsibilities—but with the right tools, hosting can be both profitable and stress-free.
Track your earnings & expenses from the start.
Take advantage of tax deductions to lower your taxable income.
Stay compliant with state & local laws regarding rental taxes.
