3 results for tag: Self-Employment Tax


Do You Owe Self-Employment Tax on Airbnb Rental Income?

In Chief Counsel Advice (CCA) 202151005, the IRS opined on this issue. But before we get to what the IRS said, understand that the CCA’s (Central Collection Agency) conclusions cannot be cited as precedent or authority by others, such as you or your tax professional. Even so, we always consider what the CCA says as semi-useful information and cover it here, along with some analysis that goes beyond what the IRS came up with. So, here goes. The Exact Question To be specific, the CCA asks whether net income from renting out living quarters is excluded from self-employment income under Section 1402(a)(1) of our beloved Internal Revenue ...

Self-Employment: Quick and Dirty Guide to Tax Issues and Savings

If you're considering joining the Great Resignation and becoming self-employed to be in charge of yourself, pay attention. Before leaping, here are some things to consider regarding the tax implications. This self-employment thing may not be as rosy as it appears. Here’s the big picture. Don’t Believe the Hype Despite what some may believe, becoming self-employed wonʼt allow you to: Write off all your meals as a business expense, Deduct the cost of taking your friends to sporting events, Deduct all your transportation expenses, and Write off the entire cost of owning or renting a residence that contains your home office. S...

Part Two: Three More Answers on “Paying for College—A Handy-Dandy Strategy”

Parts of this article are published with permission from Bradford Tax Institute, © 2021 Daniel Morris, Morris + D’Angelo Last week, in the article I shared with you "Paying for College—a Handy-Dandy Strategy", you learned that you could pay your College Student, for example, $23,255 for a one-time job that was not subject to Self-Employment Taxes. With this strategy, you learned that you could deduct the $23,255 and your child paid $1,028 in 2021 taxes. This is good news, but you might ask: Do I need to give my student a 1099? Which one—the NEC or the MISC? What box do I check on the 1099? Since the $23,255 is not subject to the ...