Taxes on iris — what you should know

General information, not tax advice. Last updated: July 2026

iris is built on giving, lending, and trading — and the tax law treats those very differently. Here's the honest map. For your own situation, talk to a tax professional.

One rule above all: income is taxable whether or not you receive a tax form. Reporting thresholds control paperwork, not what you owe.

Federal

Gifts are not income. Ever.

A genuine gift — no strings, nothing expected back — is never taxable income to the person receiving it. Givers can give up to $19,000 per person per year (2026) without even a filing requirement, and far more before any tax applies.

irs.gov — Frequently asked questions on gift taxes

Lending and borrowing are tax non-events.

Borrowing a ladder, a car, or a room creates no income for anyone.

Selling your own stuff at a loss isn't taxable.

Sold your used bike for less than you paid? That's not income. Most personal items sell below original cost. Keep a note of what you originally paid — it's your proof.

irs.gov — What to do with Form 1099-K

Trades, barter, and Flow received for goods or services ARE income.

When you trade a skill for a couch, or accept Flow as payment, the IRS treats the fair market value of what you receive as taxable income — even though no cash changed hands. Trading property is taxed only on your gain over what you paid; providing services is taxed on the full value received.

irs.gov — Topic 420, Bartering income

Cash payments: the paperwork threshold is high, the tax isn't.

Payment platforms only issue a Form 1099-K if you receive more than $20,000 AND more than 200 transactions in a year. Below that, no form — but any profit is still taxable.

irs.gov — Understanding your Form 1099-K

Renting your home? 14 days a year is tax-free.

If you rent out your own residence for 14 or fewer days in a calendar year, that rental income is completely excluded from federal tax — no cap, no reporting. Day 15 makes the entire year's rental income taxable, and even a two-hour booking counts as a full day. Charge fair market rates and keep records.

irs.gov — Publication 527 (see "Used as a home but rented less than 15 days")

Hobby or business?

Occasional, casual activity is not the same as running a business. If you regularly sell services for profit, you may owe self-employment tax (filing required at $400+ of net self-employment income) — and you can also deduct business expenses.

irs.gov — Self-employed individuals tax center

California / Los Angeles

California follows the federal rules above, including the $20,000/200 payment-form threshold and the 14-day rental exclusion. No state gift tax. Two LA-specific things:

If you earn regularly in the City of LA — register. It's free under $100K.

LA taxes business activity, but exempts anyone with $100,000 or less in gross receipts — only if you register and renew on time each year (deadline: early March). Skip the free paperwork and the city can charge back taxes and penalties reaching back seven years.

finance.lacity.gov — Self-employed, contractors, creative artists

Creative work gets extra room.

LA exempts qualifying creative activities up to $300,000 in receipts (timely registration still required).

finance.lacity.gov — Creative Artist Exemption

New York / NYC

New York follows the federal rules above. No state gift tax. Two NYC-specific things:

The Unincorporated Business Tax (UBT) — the one nobody's heard of.

NYC charges freelancers and sole proprietors a separate 4% tax on business income, on top of everything else. Good news: it generally doesn't require filing until your business grosses over $95,000, and a credit wipes it out at lower incomes. If your iris earnings are heading toward six figures, talk to a CPA before the city writes to you.

nyc.gov — Unincorporated Business Tax

Space hosts: renting your own property is generally UBT-exempt.

Managing your own real estate for your own account doesn't count as an "unincorporated business."

Overnight stays are heavily regulated in NYC.

Short-term rentals require city registration with strict conditions. iris Space is designed around daytime and non-lodging uses partly for this reason.

nyc.gov — Office of Special Enforcement (Local Law 18)

Questions about your specific situation belong with a tax professional. iris keeps clean records of your activity — your year-end summary will show your gifts, loans, sales, and trades in plain terms you can hand to your preparer.