Tax Info for Vehicle Owners

1099-K from Stripe

Stripe, our payment processor, is required by the IRS to issue Form 1099-K to any payee who receives more than $5,000 in gross payment volume during the 2026 tax year. Stripe sends 1099-Ks electronically through your Stripe Express account and reports the same amounts to the IRS.

What “gross” means: Your 1099-K reports the full amount a renter paid, before ThrottleShare's service fee is deducted. You only receive the net amount, so you'll likely deduct the service fee as a business expense on Schedule C.

When to expect it: Stripe typically makes 1099-K forms available by January 31 of the following year. You can download yours at any time from your Stripe Express dashboard.

Self-Employment Tax & Income Tax

If you rent out vehicles as a regular business activity (not a one-time thing), the IRS generally treats your rental income as self-employment income reported on Schedule C. That means:

• Federal income tax at your ordinary rate
• Self-employment tax (currently 15.3% on net earnings, covering Social Security + Medicare)
• Quarterly estimated tax payments if you expect to owe $1,000+ for the year

If you rent out property occasionally and it's not your trade or business, you may report it on Schedule E instead. A CPA can help you determine which applies.

Deductible Expenses

Common deductions for powersports rental income include:

• ThrottleShare service fees
• Stripe payment processing fees
• Vehicle maintenance, repairs, cleaning, oil changes
• Storage, trailer fees, dock fees, winterization
• Fuel used during rental prep or delivery
• Commercial rental insurance premiums
• Depreciation on the vehicle (ask a CPA about MACRS and bonus depreciation)
• Mileage for rental-related driving (current 2026 standard rate is set by the IRS)

Keep detailed records. Receipts, mileage logs, and booking history in your Stripe dashboard + ThrottleShare account are your audit trail.

State & Local Rental Tax

Most states charge sales tax or a specific rental tax on short-term vehicle, boat, or powersports rentals. As of April 2026, you (not ThrottleShare) are responsible for collecting and remitting these taxes in most states.

Exception: If ThrottleShare crosses a state's “marketplace facilitator” threshold (typically $100,000–$500,000 of in-state rental volume), we may be required to collect and remit on your behalf. We will notify you by email when that happens for your state.

Common state rates to check:

• Arizona: TPT Class 014 Rental of Personal Property @ 6.1% (+ city/county)
• Florida: 6% state + 0.5–1.5% county discretionary surtax
• Texas: 6.25% state (+ local) on non-motor-vehicle rentals; special motor-vehicle rental tax applies to cars/motorcycles/trucks/trailers
• California: rental-vehicle platforms are currently excluded from marketplace-facilitator law — owner handles
• Illinois: state + locals on short-term vehicle rentals

Contact your state Department of Revenue for exact rules and filing frequency.

W-9 and Tax ID

Stripe collects your W-9 information (name, address, and Social Security Number or EIN) during Stripe Connect onboarding. This is required for 1099-K reporting. If you haven't completed onboarding, you will not be able to receive payouts.

LLC or Sole Proprietor?

Many owners start as sole proprietors using their Social Security Number. At higher volumes, some find tax advantages (and liability separation) in forming an LLC or an S-Corp. A CPA can model your breakeven based on your volume, vehicle count, and state.

Disclaimer

This page is general information, not legal or tax advice. Tax rules change frequently and vary by state and situation. Consult a licensed CPA or tax attorney for advice specific to your circumstances. ThrottleShare and Deer Track Design LLC disclaim all liability for tax outcomes based on this page.

Questions

For platform-specific questions (e.g., how to access your Stripe 1099-K), email [email protected]. For tax-strategy questions, consult a CPA.