This week, the IRS unveiled its new Sharing
Economy Tax Center to help active participants in the sharing economy navigate
the many income tax considerations associated with common income-earning activities
such as driving for Uber or renting out a room on Airbnb. Unsurprisingly, the IRS content focuses on Issues for Individuals Performing Services
– like a car shuttle service or short-term property rental. But consider the source. Remember, this is the IRS whose chief concern
is how you report revenue from these activities and file your individual income
tax returns. They are focused
exclusively on your income and
collecting the proper taxes on that amount at the federal level.
But lodging tax has nothing to do with the IRS. If you’re looking for lodging tax help on the
new IRS website, you’re likely to be frustrated. Although the site does provide useful information
for vacation rental property owners about depreciation, amortization, as well
as what expenses you can deduct (such as mortgage interest, real estate taxes,
casualty losses, maintenance, utilities, insurance) – issues which will affect your annual taxable rental
income – it does not provide any
lodging tax compliance guidance whatsoever.
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