IRS launches sharing economy site
If you are one of the millions of Americans using online platforms to rent a spare bedroom, provide car rides or exchange goods and services, you might want to check out the IRS’ new sharing economy tax center.
Sure, the sharing economy has changed how people commute, travel, rent vacation places and perform many other activities. But there are old-fashioned tax implications if you provide any of these services.
In general, if you receive income from any sharing economy activity, it’s considered taxable income. And it doesn’t matter if you don’t receive or use Form 1099-MISC (miscellaneous income), 1099-K (payment card and third party network transactions), W-2 (wage and tax statement) or another income statement.
In fact, it’s considered taxable income even if you do it as a side job, part time or are paid entirely in cash.
On the other hand, some or all of your business expenses may be deductible, subject to normal tax limitations and rules.
The IRS urges all taxpayers, including sharing economy participants, to read and understand the potential tax issues affecting them.
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