what are the taxation laws for someone who has a job but does side work without a certifiable business license and not reporting the money received, who owns a home but is renting it out to another which is resulting in extra income. How would that be considered in IRS statues?
1 Answer from Attorneys
Whether you have a license or not, the income must be reported on a Schedule C for your 1040. You would be allowed to offset ordinary business expenses, so it is important to keep good records.
The renting of the home is also income. Your would be able to take deductions for expenses such as mortgage, taxes, insurance, reapirs and upkeep. You could also get depreciation for tax purposes.
You have a tax return that requires a tax specialist to do the preparation rather than TurboTax or a "friend." I suggest H&R Block if there is one nearby.
I hope this helps!
Ron Cappuccio
www.TaxEsq.com
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