Much like rideshare drivers, delivery drivers should be tracking their mileage in a log and could get a deduction for all business mileage. With the rising popularity of services such as Amazon Flex, DoorDash, Postmates, and UberEATS, delivery drivers are definitely in demand in certain geographic areas. Keep track of your deductible miles. I’ve gotten several…
There’s no better place to get your questions answered than directly from the IRS Sharing Economy Tax Center. The IRS recently put together an extensive webpage to go over many of the issues facing those in the sharing economy. You can view the website here or continue reading below for a snap-shot of what to expect:…
If you are reading this, chances are you own a cell phone. You may even be reading this article on your cell phone. There is no doubt that cell phones have become a part of everyone’s day-to-day lives. Many new entrepreneurs and small business owners may even start out using their personal cell phone for…
My name is Joe Starzyk. I am a CPA and I specialize in tax return preparation, planning, and consulting for individuals and small businesses – particularly those taking part in the sharing economy. This article focuses on rideshare taxes. Though I make every effort to provide accurate information, tax laws are constantly changing. All information…
If you are one of the thousands of people who have successfully funded a project on Kickstarter, or similar sites such as Indiegogo, or Go Fund Me – congrats! Hopefully you’ve considered the crowdfunding tax issues beforehand, but if not, this article should provide you with some background knowledge. This article only covers the income…
Tax deductions for delivery drivers, such as those that use Postmates, Doordash, Instacart, Grubhub or others, are primarily based on vehicle operating costs. Most anyone will qualify for contracting with a delivery service company. To some, it is more appealing than having strangers occupy your vehicle, as is the case for Uber or Lyft. Depending…
So you know you need to track your mileage in a log, but do you know exactly which miles are deductible? The answer is not 100% clear-cut. There are certain situations where the miles are certainly deductible, but other situations enter into a gray zone. I believe the best way to determine your deductible miles…
Room Rentals You may be wondering: do you have to pay tax from renting a room in your house? Generally, the answer is yes – you will have to report the income on your tax return and you may owe tax on it. For the purposes of this article, we will assume you are renting…
The income you earn on Fiverr is considered self-employment income. Fiverr income is taxable to the recipient. If you haven’t heard of Fiverr, it’s a website that allows its users to offer products and services starting at just $5. The choices are abundant, and many users have great things to say about the service. Fiverr…
Form 2106 for Employee Business Expenses is used to claim unreimbursed expenses related to your work. The recent Uber lawsuit in California is challenging Uber’s classification of its drivers as independent contractors vs. employees. Should the courts decide that drivers are in fact employees in California, this form could see added usage. PLEASE NOTE: This…
This article will help you learn about what to do with Turo (formerly RelayRides) income and what deductions and other car-sharing tax benefits are available. Much like Airbnb has disrupted the hotel industry, companies such as Turo and Getaround are attempting to disrupt the car rental business. They have grown tremendously over the past few years. Car…
IRS videos are available to the public free of charge to help you understand your taxes. Many people are unaware that this resource even exists. The range of videos covers everything from what to ask your accountant to understanding depreciation. You can find all videos at the following link: http://www.irsvideos.gov/ If you’re an rideshare driver…
Uber and other rideshare drivers must keep an IRS approved mileage log in order to maximize their tax deduction. You are entitled to take a tax deduction for all mileage driven for business purposes. Don’t be afraid to take this tax deduction. If you’re thinking to yourself that you don’t have a business, well, think…
Not sure what the tax effect of renting your home will be? Did you decide to move and put your old home on the rental market? Depending on the housing market in your area, this may very well have been the best choice for you. Or maybe you want to rent out your second home?…
Companies such as Uber and Lyft have started using the Form 1099-K along with the Form 1099-MISC. These forms report payments made to individuals for the year. Many people are familiar with the Form 1099-MISC that companies use to report payments to independent contractors. But a Form 1099-K could be completely foreign to them. Check…
You may be entitled to more rental home deductions than you may realize. Following is a list, in no particular order, of the top 21 deductions. This list of rental home deductions is not all-inclusive, and some deductions may not apply in your situation: 1. Property taxes 2. Mortgage interest 3. Mortgage insurance 4. Credit…
Please view my video for my personal analysis of a Form 1099 from Uber. You will learn about the information that the IRS receives, the information that you need to use, and other important items. Following is a transcript of the video: Hi everyone, my name is Joe Starzyk. I am the owner and sole…
Rideshare (Uber, Lyft, etc.) and other drivers actually have two options (see my mileage vs. actual expense method article) for deducting auto expenses attributed to driving passengers for hire. These methods include the standard mileage rate method (available starting in 2011), and the actual expense method. Your total deduction and recordkeeping requirements differ depending on…
Let’s say you went on vacation for a couple of weeks, and, thanks to companies such as Airbnb, you managed to find a short term renter and received some Airbnb rental income for 5 days while you were gone. A little extra income never hurt anyone right? Well, in this case, you are right. If…
Fortunately your Form 1099 has a lot of useful information that you need on it. But first off, congrats! Choosing yourself is a lot harder than it seems. Being your own boss has many advantages, and, sure, some disadvantages. The feeling of being in charge of how much money you earn is great. Hopefully you…
