The IRS is Noticing the Sharing Economy

The IRS is Noticing the Sharing Economy

If you are earning money by ride sharing, renting rooms, and other "Sharing Economy" ways, the IRS is paying attention.

From IRS.gov:  If you use one of the many online platforms available to rent a spare bedroom, provide car rides, or to connect and provide a number of other goods or services, you’re involved in what is sometimes called the sharing economy.

An emerging area of activity in the past few years, the sharing economy has changed how people commute, travel, rent vacation accommodations and perform many other activities. Also referred to as the on-demand, gig or access economy, the sharing economy allows individuals and groups to utilize technology advancements to arrange transactions to generate revenue from assets they possess - (such as cars and homes) - or services they provide - (such as household chores or technology services). .

What does this mean for you?

Be sure to declare ALL the money you receive from your businesses.

Determine if you need to file self-employment taxes quarterly.

Keep good records of both income and expenses.

To help you through the process, I've written Banish Your Bookkeeping Nightmares-The Go-To Guide for the Self-Employed to Save Money, Reduce Frustration, & Satisfy the IRSI'll take you step by step through setting up your accounting system, what types of expenses are deductible, and how to calculate and file your self-employment taxes.