What is tax planning? Essentially, tax planning is something you do to put your business into the best possible tax position. After all, nobody... Read more
The sharing economy generates half a billion dollars per year with Airbnb and Uber being the two biggest players. But what are the tax implications?
Advertising a room for rent on Airbnb? Any income generated from listing a room has to be declared. In addition to declaring any income, you must be aware that you risk losing the capital gains exemption when selling a primary residence.
Providing taxi services via Uber? All income earned must be declared and under GST law you are carrying on an enterprise providing taxi services and are required to register for GST regardless of your turnover.
1. Do not try to hide income derived from the sharing economy as the ATO can easily data-match
2. Keep track of all your income and expenses as you are essentially now a small business owner
3. If you are not sure of your obligations talk to an expert
Although you have to declare income derived through the sharing economy, the upside is you can also claim appropriate deductions against this income!
If you have any questions about the tax implications of the sharing economy please contact us.
Phillip Cross, Royce Cross Agencies
Kerri Stutley, Tumby Bay Foodland