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Should my Airbnb or VRBO rental income be reported as Schedule C income or Schedule E income?
Contributed by: Phillip B, FreeTaxUSA Agent, Tax Pro Short Term Vacation Rental Rules Short term vacation rentals through Airbnb, VRBO, and other travel websites have become a popular way to make rental income from residential rental real estate. Knowing how you should report this income on your tax return is an important…
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How do I file a Schedule C for Uber, Lyft and other delivery or rideshare businesses?
Contributed by: TriciaD, FreeTaxUSA Agent If you are a contractor for Uber, Lyft, or other ride share companies, you are considered self-employed. This means you are responsible for paying taxes on your net income (income minus expenses) from your ride share business. You must also pay self-employment tax, which covers…
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How are vacation home rentals handled differently from other rental property?
Contributed by: PhillipB, FreeTaxUSA Agent, Tax Pro Vacation homes are a great benefit to those who can afford to own them. They offer a place to stay when you need to get out of town, and they can be a source of income for the rest of the year. However, the tax code has some special rules to keep vacation owners from…
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Self-employed health insurance when you have a 1095-A
Contributed by: Henry, FreeTaxUSA Agent, Tax Pro As a self-employed individual who pays for your own health insurance, you may wonder if it’s possible to claim both the self-employed health insurance deduction and the premium tax credit (PTC). You can if you allocate your insurance premiums between the deduction and…
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Reporting unreimbursed partnership expenses
Contributed by: PhillipB, FreeTaxUSA Agent, Tax Pro Many small businesses report their income and expenses as partnerships on IRS Form 1065. Expenses that are paid out of the partnership entity’s accounts will be deducted as partnership expenses on Form 1065 and will then be passed on to the partners on Schedule K-1. But…
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Do I legally have to claim all my business expenses?
Contributed by: Henry, FreeTaxUSA Agent, Tax Pro One common question that arises for business owners is whether all business expenses must be claimed. Understanding the legal requirements when it comes to claiming expenses can help you make informed decisions and avoid potential pitfalls. Claiming business expenses…
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Should my royalty income be reported on Schedule C or Schedule E?
Contributed by: PhillipB, FreeTaxUSA Agent, Tax Pro What is royalty income? Royalties are payments for using someone else's property (like their work or land) or giving the property owner part of the income from it (like mining their land). Royalty income can be: a payment to a patent owner for use of a patent. a payment…
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Reporting vehicle expenses for one vehicle used in multiple businesses (2023 and earlier)
Contributed by: WrenD, FreeTaxUSA Agent, Tax Pro Nowadays, many individuals earn some extra cash through various side hustles. Activities such as dog walking, ridesharing, delivering food, or renting space are common. It's common for individuals to use the same personal vehicle for multiple businesses or hustles, which…
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Should I report my new business if I did not open for business this year?
Contributed by: PhillipB, FreeTaxUSA Agent, Tax Pro If your new business was still in the start-up phase and the business received zero gross income, you would not file a Schedule C until the business starts active operations of the trade or business. What do I do with the expenses I had during the start-up phase? The tax…
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Business use of vehicle overview
Contributed by WrenD, FreeTaxUSA, Tax Pro If you use your car for your business (or side hustle), you may be able to save money on your taxes by deducting some of the costs of using your vehicle for business purposes. Here are some things you need to know to claim your vehicle expenses. Business vs. Personal Use You need…