Do you use an online source to rent out a room or vacation home or provide transportation to others that you receive payment for? You might even use Craigslist or post it in the newspaper. Did you know that this needs to be reported on your income tax return, even if you do not receive a Form 1099-MISC or other reporting form for that rental income? The payment you receive is considered taxable as income for which you are responsible for paying taxes on at year end. Depending upon how often you rent, you might want to make an estimated tax payment in relation to this.
The IRS has a new web page to help you sort out this often messy area. See here.
Also, as a reminder, if you own property that you rent out in the State of New Hampshire, you are required to register with the Department of Revenue and collect NH meals & rental tax (currently 9%) and submit that to the State. The State is also requiring owners of short-term rentals to include their operating license numbers in any advertising.
If you have questions, please give us a call at 603-224-2000. We are here for you.