This transcript has been automatically generated and may not be 100% accurate.  here's a hypothetical patch ... single young guy who lives and say Brooklyn New York ... well my last year to book a trip to Mexico we ... headed up to sell ... fire was out on their BMT dot com on the way ... this trip will be much different so ... until the day ... registering on the site as a hoax ... and before you with ... some German trouble was that ... the show them around and handing the keys ... to sell ... as the easiest to dinner but said ever made ... the money ride his bank accounts as he arrived at the beach ... now here's a question ... can spend it all portion instead so this sell it on the assumption you may eventually have to pay income tax ... for many ... the rear awakened early in the New Year appeared in The another home rental platforms to end users attend online tax ... it means that income is being reported to the IRS but some individuals like our character from Brooklyn ... may actually be exempt from paying taxes on that one ... how's that possible ... it's thanks to a tax break often called the Masters exemption ... because of how nerdy among people who rent their homes during the Gulf ... U S taxpayers to rent their home or apartment or even just a room in her home for no more than fourteen days per year in pocket income ... tax free ... but to go in one day be on those fourteen ... Uncle Sam will take his henchmen cups ... and take advantage of the Masters exemption ... that's where things can get complicated ... some services like HomeAway don't send ten ninety nine speakers company acts as ... a broker doesn't collector send money to taxpayers less a case experts ... to qualify for exemption can simply ... not report the income to hire us for our broken I ... wanted so much for your situation ... since received a ten ninety nine ... the ers will learn of how much they are ... but the agency we know that you should be tax free because he ran for fewer than fifteen days ... Jerez instead help taxpayers to deal with this issue ... and tax experts agree there's no easy solution ... here are the options ... you file your taxes don't report it ... for your records in case the IRS since July ... you have a copy of the battle of Britain along with its mountain range ... another option ... when the hosting revenue higher annual tax filing as ... other income ... Kuttin forty four ... then add an entry reduced ... to zero ... and attach an explanation to return ... some but not all it went on to an initial effects of our Brooklyn host decides to do it better be sure he has granted more than fourteen days last year ... because it did a Masters ... the advantages and tax issues have become ... much
Airbnb and other platforms provide millions of “hosts" a way to make extra cash. How is it legal for some people to not owe federal tax on that income? WSJ’s Jason Bellini has #TheShortAnswer.