This article is pending legal or tax review and explains current BorrowHive product behavior.
Deposits, late fees, and damage charges
This article explains BorrowHive product behavior. It is not legal or tax advice.
Refundable security deposits are separate from rental revenue when they are only authorized as a hold and later released. BorrowHive records the authorization and release.
If a deposit is captured later, the reason matters. Extra rental time or a late return may be treated as an additional rental-related charge. Damage reimbursement, replacement cost, cleaning, service, convenience, or platform claim fees may need manual review before BorrowHive finalizes tax treatment.
During the Colorado pilot, BorrowHive does not let owners capture deposit funds directly. A BorrowHive staff reviewer must approve the claim amount and classify the tax treatment before capture.
Damage and loss reimbursement claims can proceed only after staff records the claim as a reimbursement rather than extra rental time or a service fee.
For the Colorado controlled pilot, late-return or extra-time captures can proceed only when BorrowHive can connect the claim to the original approved rental tax record and that record shows the rental was handled under the Colorado acquisition-tax-paid exemption path. If that record is missing or does not support the same treatment, capture stays blocked.
Cleaning, service, convenience, platform claim fees, and other manual-review captures stay blocked until BorrowHive has a post-rental tax collection workflow for that charge type.
Need more help?
Contact support from the BorrowHive app or email support@borrowhive.com. Do not send ID photos, selfies, full document numbers, tax IDs, payment credentials, or private owner documents through ordinary email.