The IRS launched the Sharing Economy Tax Center on August 22, 2016. The new web page serves as a resource for taxpayers who provide services within the sharing economy. This resource will be key come tax season for anyone who must pay taxes on a short-term rental. The IRS explains that, in most circumstances, income from rental activity is taxable, but some, if not all, business expenses may be deductible. However, the Sharing Economy Tax Center does not provide specific tax information for local jurisdictions, so be sure to research the local laws wherever your short-term rental resides.