One of the most popular ways to make extra cash is to rent out your home or a room in your home. We lovingly refer to this new “business” as the Sharing Economy. AirBnB is probaly the most commonly used and popular online platform for home rentals.
The bad news – this income is taxable.
The good news – this income is reported on Schedule E of your tax return which is subject to Federal Income Tax BUT avoids Social Security and Medicare taxes.
More good news – if you have rented out your personal home for 14 days or less then the rental income is not taxable. An example would be renting out your home for Superbowl weekend only. Not taxable!
So, how can you use these favorable tax laws to make some extra cash this summer?
Find this and more tax deduction resources at www.wendybarlin.com