HIRD REPORTING REQUIREMENTS FOR MA EMPLOYERS - DEADLINE APPROACHING In summary, while this rule is not new, we wanted to remind our clients and friends of the firm of this rule as we approach year-end so you are prepared to file your taxes for calendar year 2023. Taxable items include the rent and any other non-refundable charges such as cleaning, linen or pet fees. The tax imposed is meant to be paid by the renters, just like they would pay the tax at a hotel or motel. Additional taxes such as wastewater tax (applicable to 15 towns in Barnstable County) and individual town assessments should be included in the taxes charged to renters. For a full list of Massachusetts towns and the tax percentage they are each assessing, click here. If you rent your home for 14 days or fewer per calendar year, you are exempt from the tax but are still required to register your home and provide insurance (minimum of $1M in liability insurance). Additionally, long-term rentals defined as longer than 31 days are excluded from the tax. Taxes are due to the state via MassTaxConnect by the 30th of the month after the renter(s) depart. For example, if you have 2 rental parties who depart in July, their taxes will be due by August 30th. Payments are made electronically on the MassTaxConnect website. Please note that if you utilize a rental service such as VRBO or Airbnb, they may be paying the tax for you but you will want to confirm as it is the responsibility of the operator to ensure timely payments. However, if you rent your residence independently, you are responsible for remitting the tax. Operators of short-term rentals must register with MassTaxConnect. Certain towns may also require a separate registration/fee.Ģ. REMINDER: TAX RULE FOR SHORT-TERM RENTALS IN MASSACHUSETTSīack in 2019, we made you aware of a new tax rule in Massachusetts that expanded the state’s hotel and motel tax to include the short-term rental of homes and condos. A short-term rental is defined as any rental period of 31 days or less and that are subject to a 5.7% state tax as well as any location-based local taxes and/or town assessments.įor example, if you own a home on Cape Cod that you rent during the year, you must do two things:ġ. As always, please call the office at (781) 551-0040 with any specific questions you may have. Simply click on the links at the bottom of our homepage to like us on LinkedIn and Facebook. We also invite you to follow us on social media for additional information from other sources such as the IRS. Please note that the information provided is for the specific date specified and is subject to change due to the ever-changing world of accounting. This page was created to keep our clients and friends of the firm updated on relevant news and information as it becomes available. With that in mind, below are some recently articles that we invite you to explore. This includes regular updates on the latest news and trends through emails, newsletters, webinars and seminars, along with other educational opportunities. “This will ensure that employees and their families are provided necessary protections from the spread of COVID-19 and it is a goal that I support,” Baker wrote in a letter to the House and Senate.We pride ourselves on educating our clients to allow them to become more fully engaged in their strategic financial planning, accounting and tax processes. Under the new law, employees are eligible for up to five days of paid leave under a program that Baker said is similar to a federal COVID-19 paid leave program and applies to “employees who are sick with, isolated or quarantined due to COVID, or are securing immunization, or caring for family members in the same circumstances.” The programs were set up to help businesses function and retain employees during the pandemic. The new law also ensures that, for tax purposes, forgiven Paycheck Protection Program loans and Economic Injury Disaster Loan advances are excluded from gross income, regardless of how businesses are organized. The bill contains language already approved at the federal level to exclude $10,200 of unemployment compensation received by certain individuals with lower incomes in 20 from state taxes, a change the Department of Revenue will have to wrestle with for people who have already filed returns for 2020. The governor also returned sections of the bill dealing with all the above with amendments. Charlie Baker has backed $7 billion in borrowing to stabilize the unemployment insurance system, established a paid sick leave program for COVID-19 emergencies, and reduced the size of premium increases employers face to fund the jobless benefits system.
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