The IRS Is Cracking Down on Taxes for Side Hustles - moneywise.com
Summary
The IRS is increasing its scrutiny of side hustle income, including income from short-term rentals. Hosts need to ensure they are accurately reporting all rental income to avoid potential penalties. Staying compliant with tax regulations is crucial for all STR owners.
Key Insights
- •The IRS is cracking down on taxes for side hustles.
Action Items
- ✓Review current tax filings and consult a tax professional if needed to ensure compliance.Effort: mediumImpact: high
- ✓Ensure accurate bookkeeping to track all rental income and expenses.Effort: mediumImpact: high
Common Mistakes
- ⚠Failure to accurately report rental income and expenses can lead to penalties from the IRS.
More from Regulations & Compliance
Arizona Rep. Bliss's bill regarding short-term rentals has passed, signaling potential changes to the regulatory landscape for hosts in the state. This legislative development could impact operational requirements and potentially the profitability of short-term rental businesses within Arizona. Hosts should stay informed about the specifics to ensure compliance.
Annapolis, MD, is experiencing a surge in short-term rental license applications, indicating increased interest in the STR market. This rise follows efforts to improve compliance with local regulations. Hosts should familiarize themselves with new permit requirements to avoid potential penalties and ensure smooth operations.
This article discusses the construction of more rental homes near transit in Burnaby. The focus is on increasing housing supply near public transportation. While specific STR implications are not detailed, it implies a changing landscape for residential real estate and potentially offers insights into future housing trends that may affect hosts in areas around Burnaby.
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