If you participate in the sharing economy, you use websites or apps to provide services, such as renting your house for guests. Doing so may require you to address specific tax details for your income. Here are some key items to be aware of as you manage your tax liabilities:

Taxable Income

You generally have to pay federal taxes when you receive income from any of the following:

  • Part-time work
  • Side business
  • Cash payments
  • Form 1099 or W-2 money

Specific Tax Items for Rented Homes

If you rent any part of a home that you live in for a duration of the year, you may need to address additional tax details. You can find more information in the IRS Publication 527, Residential Rental Property (Including Rental of Vacation Homes).

Other details may apply, and you can find more information on the IRS website.

* This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.

 

Tip adapted from IRS.gov

Pinnacle Financial

Pinnacle Financial

The Pinnacle team’s primary objective is to provide holistic financial strategies. Our ultimate vision is to educate clients about their own personal financial challenges and potential solutions regarding complex financial issues.

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