The FIFA World Cup and Income Opportunities

Contributed by: Cindy Wysong, CFP®

---

Don't miss a thing with The Hive Women and Buzz from The Hive!

CATCH THE BUZZ

---

In just a couple of weeks hundreds of thousands of people are expected to descend upon Kansas City and the surrounding metro area for several matches of the FIFA World Cup. 

What an incredible opportunity for the city and for small businsseses to showcase their products, services, and signature Midwestern hospitality on a global stage!

The KC metro already boasts a population of roughly 2.25 million people, so, hold on tight!  Our local economy is about to experience a significant surge.  Industries like transportation, hospitality, dining and entertainment are all expected to see major growth as visitors arrive from around the world.    

I know business owners who are both excited and understandably nervous about meeting the potential demand from our international guests.  Preparing for a sudden influx of customers can be a real challenge.  Additionally, there’s a growing group of people – who are not business owners – who are looking to take advantage of the opportunities.

We have all seen the advertisements teasing potential income for homeowners who might choose to rent their entire home or just a spare bedroom.  Platforms like Airbnb have made it easier than ever to participate in the short-term rental market, and demand is expected to be exceptionally high. 

Similarly, many people are considering driving for rideshare companies, such as Uber or Lyft, to help meet increased transportation needs and earn additional money.  With fans needing rides to and from stadiums, hotels, and entertainment districts, the earning potential can be appealing.

If you choose to engage in either of these services, beware!  It’s difficult to escape Uncle Sam when it comes to making money.  As you could have guessed, both of these activities – renting your home and becoming an Uber driver – result in taxable income.

Just like many other forms of employment, Uber will issue you a Form 1099 that captures the wages paid to you.  This is considered earned (or active) income.

Likewise, if you rent your home through Airbnb, that income, too, must be reported.  This type of income is generally considered unearned (or passive) income.  But, depending on the specific details of your rental, this could get classified differently.

While the World Cup presents a tremendous opportunity to generate extra income, it’s important to plan ahead.  Understanding your tax obligations, keeping good records, and possibly consulting with a tax professional can help ensure that this exciting opportunity in KC doesn’t come with unexpected surprises when tax season arrives.

---

Cindy Wysong is a Partner and Wealth Advisor at BCWM, LLC.

To contact Cindy:

Email:  cindy@bcwm.com

Telephone: (913) 685-2300

www.bcwm.com