Educating gig economy workers on their obligations is a goal of the IRS. Many individuals who take on freelance gigs from online sites or rent out their homes or rooms through a website or app do not receive a W -2 or 1099 for their work. Some are unaware that their income is taxable or, depending on the circumstances, that they are self-employed. The agency is trying to raise public awareness. IRS launched the Gig Economy Tax Center on its website, (https://www.irs.gov/businesses/gig-economy-tax-center) which offers resources on tax filing requirements, recordkeeping, self-employment taxes and much more
Businesses that legally grow or sell marijuana have a major tax problem. IRS takes the view that even in states where it is legal to sell and use marijuana, a federal tax statue prohibits tax deductions for sellers of controlled substances that are considered illegal under U.S. law. Here, a Calif. Retail sellers of marijuana can deduct only the cost of the drugs … what it paid for the inventory. Other expenses aren’t deductible, the Tax Court says.
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