Airbnb Rentals May Be Subject to Self-employment Tax

Rental income usually is exempt from self-employment tax if the owner is not in a trade or business. If substantial services are provided, the owner of property rented on a short-term basis through an online portal such as Airbnb may be subject to self-employment tax on net rental income. The IRS ruled informally that a determination under the passive activity loss rules does not control whether rental income is or is not subject to self-employment tax.  #IdeaoftheDay

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