New, lower Form 1099-K threshold

If you participate more than 100 hours during the year are you participate at least as much as any other person.

A 1099-K form is a record that a third-party payment network transferred at least $600 to you during the year.

Beginning in the 2020 tax year, Form 1099-NEC is the IRS form used by businesses to report payments made to independent contractors, freelancers, sole proprietors, and self-employed individuals. Prior to 2020, nonemployee compensation was reported in box 7 on Form 1099-MISC.

Allows a landlord‘s to deduct up to $25,000 in rental losses each year. Only if your modified adjusted gross income is less than $100,000

If you participated in the activity for more than 500 hours during the year. A typical work year has 2000 hours. So 500 hours represents about a quarter of a full-time job.

Altering your property to a use that is not consistent with it's original intended ordinary use. For example converting a garage or basement to a guestroom.

An addtional 0.9% individual’s wages, compensation, or self-employment income over a certain over a certain threshold (200k 2021 single), put in place 2013

Line 11 on 1040. It’s an important number because other taxes are often based off it.

Depending on the year there may be an annual limit on the total business losses you’re allowed to take on your tax return

Fxing a pre-existing defect or condition. Including expanding your property or increasing the quality or capacity of your property.

An option method to allocate the rental use percentage of your mortage interest and property tax.

Bonus depreciation is a tax incentive that allows a business to immediately deduct a large percentage of the purchase price of eligible assets.

A pass-through business entity is often created to own property. S corporations, partnerships and limited liability companies (LLCs) are the most popular types of entities. They are also called a "disregarded entity."

If property is owned by more than one person, the income and deductions must be allocated according to how much of the property they own.

If you live in a Community property state, (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin.) you may file as one Schedule C.

Daily maid service would be cleaning you provide daily, while the tenant is occupying the rental.

The ability to currently deduct any low-cost items in your rental activity. $2500 per item is clean by filing election with your return

Depreciation is the process in which you deduct a portion of the expenses over time. You must do this for long-term assests. Depreciation is not optional.

When you sell your home at a profit you will be required to pay tax on the amount of depreciation you took over the years.

A house, apartment, condominium, mobile home, boat or similar property and all structures or other properties that accompany, such as a garage or studio.

EIDL are not forgiven they must be paid back. Interest on EIDL loans are a tax deductible expense.

If you expect to owe at least $1000 in income tax on your rental activity, you many need to pay estimated taxes to the IRS.

If you rent your property more than 14 days you’ll have to pay federal income tax on the net rental income. This is why it’s important to deduct as many expenses allowable.

Your total rental income minus the rental portion of mortgage interest real estate taxes and direct expenses not related to use at home itself.

If you own multiple rental properties you can group them together as one single activity. Generally you group short term with short term and long term and long term you have to file election with your tax return

You may be able to exclude capital gain from the sale of your main home.

If you own and occupy your home as your primary residence for at least any of the two or the five years before you sell it you don’t have to pay in contraction of certain limits

If you determine that you are in the hotel business you will have to file Schedule C and be subject to Self-employment taxes. However, there are some benefits, such as the ability to deduct your losses from non-rental income. Not subject to NII Tax.

See Substantial services.

An improvement is when a property undergoes a betterment, adaption or restoration. These terms are defined by the IRS and will help you distinguish between improvement and a repair.

Your rental activity must be continuous and regular to qualify as a business.

Sporadic or irregular activities may be considered an investment not a business. Investments are not able to claim all the same deductions as a business.

The IRS identified certain property as typically mixed personal use. Cars, boats, planes, motorcycles and any other entertainment or recreational property. This includes things such as cameras and video equipment

Taxes charged by your state, city, county or other local government. They are separate than the federal income tax and are collected by your state or local government.

Things that you use for your rental activity that have a life for more than one year.

Principal residence.

Worth at least 10% of the total rent paid by the guests.

If you’re involved in day to day operations in a regular continuous and substantial basis.

2.9% for Medicare

The NII tax is a seperate 3.8% income tax on unearned income. It is paid by individuals with a modified adjusted gross income over a certain amount.

You may be able to deduct some of your losses from nonrental income, but there are rules around how to do this.

Days the property is vacant. Days the property is offered for rent, but not rented, Days used for repairs and maintenance.

Rule that allows you to deduct from your income tax up to 20% of you net income from your rental activity.

Most PPP loans have been, and will be, apparently forgiven by the SBA. SBA loans are completely tax-free for the host. PPP borrowers do not have to list PPP loans on the tax returns.

Days you use the property. Days you rent the property for less than fair market value. Days family members use the property.

The number of days in which your personal use exceeds rental use. The maximum number of day you can personally use the property is 34 days.

Where a tax benefit is gradually reduced for higher income brackets.

What the property is worth for tax purposes

You must prorate your expenses if you are only renting a portion of the property, or if you have co-owners

A tax deduction that allows eligible self-employed and small-business owners to deduct up to 20% of their qualified business income on their taxes.

Married couples may choose to be taxed as a qualified joint venture. If they do so they will be each be treated as a separate sole proprietor and file Separate Schedule Cs. This way they don’t have to file a partnership return.

Real estate professionals are exempt from the NII tax if you immaterial participate in your activity and the activity is a business.

If your tax deductible expenses exceed your rental income for the year.

Any day you rent your property at fair market value.

The percentage of rental days over personal days plus not in use days not in his days

Repairs and maintenance are expenses to keep your property up and running. They are deductible in the year that you incur them.

Any day use been working at least eight hours maintaining your property. They are not counted as personal days. Speaking to tenants and realtors are also not personal use this.

Replacing substantial structural part of your property or rebuilding a substantial portion of your property to like-new condition. Typically if more than 30% of the properties is changed is it a restoration.

Expenses that qualify as retained maintenance are deductible in a single year. No dollar limites

You may currently deduct annual expenses for repairs maintenance improvements and other cost. limited to $1 million bill building limit subject to any minutes you can claim it some years and not others you need to document and attach something to your return

Vacation rental owners will use this form if they provide "hotel like" services. It is the form for "Profit or Loss From Business."

Most vacation rental owners will use this form. It is the form for "Supplemental Income and Loss, from rental real estate, royalties, partnerships, S corporations, etc"

These IRS rules allow you to immediately write off long-term assets.

The self-employment tax rate is 15.3%. The rate consists of two parts: 12.4% for social security and 2.9% for Medicare.

Use a separate credit card for rental activity expenses instead of mixing them on a personal card. Credit card interest is 100% deductible.

Set up a separate chicken count for your rental activity. This is one of the easiest things you can do to separate your personal and mental activity.

Short-term is most commonly defined as less than 30 days.

Hotel-like srevices provided for your guests' convenience.Maid service, Meals or snacks, laundry services, concierge services, transportation, amenities like linens, irons, hangers. If the services is more than 10% of the rental income.

12.4% for Social Security

Same as Hotel-like services. Services that are provided for the guest's convenience. Such, as providing daily maid service. It is also be defined as "a material part (>10%) of the payments made by the tenant".

If you did substantially all the work in activity during the year.

Changes to the tax code that took effect in 2018

Tax deferral means that you put off or delay the payment of taxes. Eventually you will have to pay it, but you can move it to the future.

Tax reduction permananetly reduces ithe amount of tax you need to pay.

A dwelling unit is considered a residence if you used it personally for at least 34 days during the year. If used personally for more than 14 days or more than 10% of a number of days during which the property is rented for for a rental which ever is greater.

If you live in your property substantially more of the time then you write it out to others. Please see his chart.