Airbnb Directed Share Program Tax Planning

Airbnb Directed Share Programs

Airbnb offers Superhosts a chance to buy the stock of the IPO at the true listing price of $68 through a “Directed Share Program ” via Morgan Stanley.

This means with proper tax planning, Airbnb Superhost entrepreneurs can enjoy stock gains! This is a very unique offering by Airbnb and they are only making this offer available at this price to Superhosts. Many of our clients that are Superhosts have been asking us about potential tax effects of buying the stock at this listing price and then selling it in a month, 6 months or 12 months thereafter.

The major difference between rental income earned as a Superhost is that it is typically classified as Ordinary Income and taxed at the normal marginal tax rates. Whereas income earned in stock transactions are classified as capital transactions taxed at either marginal tax rates or much lower capital gains tax rates.

Participating in an Initial Public Offering (IPO) entails some specific steps we can help you with.

Contact us to learn more about tax planning for Airbnb Superhosts.

This blog article is not intended to be the rendering of legal, accounting, tax advice or other professional services. Articles are based on current or proposed tax rules at the time they are written and older posts are not updated for tax rule changes. We expressly disclaim all liability in regard to actions taken or not taken based on the contents of this blog as well as the use or interpretation of this information. Information provided on this website is not all-inclusive and such information should not be relied upon as being all-inclusive.

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