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Posted by Weathers + Associates

#TaxTipThursday

#TaxTipThursday

Are you considering other opportunities for making cash, venturing into the “sharing and freelance economies”? (Examples: Uber, Airbnb or bidding for project/work as you please).  On the surface this can appear to be a great idea and even industrious.  As a business, you will need to know rules for “ordinary and necessary” expenses for your business classification, but then again, if your business venture is really a “hobby” there are limits on expenses to income earned. Whichever type of income, it is taxable according to the Internal Revenue Service.

America was built on the industry of the adventurer, the risk-taker and the entrepreneur.  It’s both exciting and scary!  Maybe your decision is not based on passion but practically, supplementing income for a special event wedding, vacation, college or just needing more income to make ends meet.  The reasons for this venture are yours.  I for one am fully supportive of the entrepreneurial spirit, after all this is my first year in my own tax debt practice, and encourage those who thoughtfully step out on their own

That said, talking to a licensed tax professional before you get started will prepare you and set you in good standing for the tax consequences of you new venture.  Leaving it, or for that matter avoiding it, until it is time to actually file taxes is never a good thing.

Weathers + Associates
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