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
This article reports on amendments to short-term rental regulations approved by a council. While specific details aren't provided, it suggests changes are taking place at the local level. Hosts should stay informed about local ordinances to remain compliant with the latest rules.
A wealthy Bay Area town implemented an Airbnb ban, raising questions about its effectiveness. The article suggests this ban might not succeed. It highlights potential loopholes and challenges in enforcement, implying the ban could face difficulties in controlling short-term rentals.
The Del Mar council has approved new short-term rental fees. This action will directly impact hosts operating in Del Mar, potentially affecting profitability and operational costs. Hosts should prepare for adjustments related to these newly implemented fees.
Curated by Learn STR by GoStudioM