Gig Economy In today's economy, most people square measure finding their hobbies and creating thus further money from it to supplement their salaries. Side gigs square measure are sometimes helpful as they earn somebody further financial gain. but it's terribly essential to know the tax liabilities which will arise once one makes cash from their hobbies. for examples of such facts gigs Singing or enjoying musical instruments and obtaining paid to perform. And an instrument repair one who sells voice-overs on his website. Their square measure varied factors that the government agency takes into thought once determinant whether or not one's facet gig may be a business. To confirm whether or not associate activity may be a business, the IRS can take up on top of one of the problems. for example, Whether you alter the operation ways with the aim of rising profit. And whether the activity makes a profit in some years and the abundant profit it makes. It is of essence to notice that there's no single issue that carries additional weight than the alternatives and government agencies may take under consideration other criteria over simply the on top of mentioned factors. Steps to require to form certain that the bureau would treat the higher than mentioned "side gigs" as businesses and not hobbies. We have seen that the bureau considers associate degree activity a business if it's majorly disbursed with the affordable expectation of constructing profits. When one desires the bureau to treat their facet gigs as businesses they need to ensure that one keeps all their receipts that involve their facet business. And essence that one review the factors placed up by the bureau indecisive whether or not one's facet activity could be a hobby or a business. IRS has additionally created an associate degree audit technique guide that's sixty-four pages and it's counseled that one goes through the guide therefore on savvy travel concerning one business or hobby

Question/ Take one of the three gig or side businesses that you described in the Gig Economy Project - Part 1 and fill out a hypothetical Schedule C for the first year of that activity. You can find a fillable Schedule C here: https://www.irs.gov/pub/irs-pdf/f1040sc.pdf

After you complete the Schedule C, print it, scan it, and upload it into Moodle along with a one-page Word document explaining how you arrived at the numbers on your Schedule C for income and expense, referencing where appropriate what you've learned about Schedule C business deductions from Chapter 3, and how those business expense deductions relate to the activity you have chosen to model.

Basically, you are forecasting with numbers and words how your first year of activity would look and explaining how you got there. I am looking for creativity, thought, and effort. There are no right or wrong answers and you certainly don't need to fill out every line on Schedule C.?