As a business owner, tax deductions are your best friend. By leveraging your qualified expenses against your income, you can effectively lower your tax obligation. When it comes to qualified expenses, the IRS allows a lot of regular business expenses to be written off. One of the best deductions for business owners and independent contractors […]
Corporate Taxes for Rental Businesses
Corporate taxes can be a confusing subject for Airbnb hosts. If your Airbnb business is incorporated, you probably need some help preparing your taxes. You need a lot of paperwork to file corporate taxes, so we put them together to help save you time. Hopefully, this post will make it easier to file your taxes […]
How to File Taxes as an Independent Contractor
Tax season is upon us, so you should be gathering your documents and preparing to meet with your tax advisor. Independent contractor taxes are different from standard W2 taxes in a few key ways. For starters, no tax is withheld from your pay so it is your job to calculate and remit the correct amount. […]
Hobby vs Business: How to Classify Your Rental Income
Is Your Rental Activity a Business?If you plan rent out a room of your home or a second home on Airbnb to earn extra income, you need to know how to determine if what are you doing qualifies as a business or hobby in order to properly prepare your taxes. Here are the rules to help you figure out if your rental activity is a business or hobby.How the IRS Defines a Business vs. Not-for-Profit (Hobby) There are nine factors that the IRS considers in determining whether your rental activity is a bus […] […]
Lyft Taxes: Tax Tips for Rideshare Drivers
Navigating the complex nature of self-employed taxes can leave you with a lot of unanswered questions. How does the IRS tax my Lyft income? Do I have to report my income from ridesharing? Will I get a 1099 form? These are just a few examples of common questions about Lyft taxes. If you drive for […]
Who Qualifies For The Earned Income Tax Credit?
Many taxpayers save a lot of money with the Earned Income Tax Credit (EITC). This common tax credit can make your refund bigger or, if you owe, it could help you save on your year-end tax bill. While the EITC is a common tax credit, you need to meet certain criteria to qualify for it. […]
Marginal vs Effective Tax Rate: What’s The Difference?
Your tax rate determines how much you pay in taxes. There are currently 7 tax brackets, ranging from 10% to 35%, where you fit into the tax brackets will depend on your income. Sounds pretty straight forward, but there is actually a little more to it. The US has a progressive tax system, meaning the […]
Uber Drivers: The Standard Mileage Deduction Might Not Be a Good Idea
If you drive for Uber or Lyft, you have two options for deducting your vehicle expenses. Drives can choose to take the standard mileage rate or Section 179 deduction. The standard mileage rate is the most common, but it’s not always the best option. In fact, you might be better off choosing another method. About […]
Turo Insurance for Fleet Owners: Everything You Need to Know
The Sharing Economy has changed the way we conduct a lot of business. From where we stay when we travel, to how we care for our pets, and even how we get from point A to point B. Ridesharing like Uber and Lyft have pioneered the Sharing Economy industry, paving the way for companies like […]
The Best Tax Tips For Freelancers
With the increasing popularity of sites like Upwork, many professionals are embracing freelance work. These platforms allow professionals to build their businesses, supplement existing income, and free themselves from the 9-to-5 grind. As a freelancer, the IRS classifies you as self employed, even if you also have a W-2 job. Whether you’re fulltime or parttime, […]