From renting spare rooms and vacation homes to car rides or using a bike…name a service and it’s probably available through the sharing economy.
Here are six things to know about how the sharing economy might affect your taxes:
- The activity is taxable.
- Some expenses are deductible.
- There are special rules for rentals.
- Participants may need to make estimated tax payments.
- There are different ways to pay.
- Taxpayers should check their withholding.
Tip courtesy of IRS.gov