Having some type of side hustle that brings in extra cash is a great way to earn a few more dollars each month. You can allocate this for food, rent or a big purchase that you are saving up for.
One new opportunity that you may want to consider is making money by charging electric scooters.
In many cities, Lime-S electric scooters have been popping up on the streets. They are part of an electric scooter share program that allows individuals to pay a flat one-dollar fee and $0.15 per minute. This allows them to ride the scooter around the city to various spots on their agenda.
Throughout the day, the electricity in these scooters starts to become depleted. The potential side hustle for you involves gathering up scooters and charging them at your home. You would then distribute them in certain areas and collect cash for providing this service.
If this is an opportunity that sounds good to you, you'll want to consider the big picture. If you start making money from this side hustle, you're going to have to pay taxes on these earnings. This side hustle tax implication will require you to keep an accurate accounting of your books.
Our friends over at "The City for Millennials" has written a terrific article on How To Make Money Charging Electric Scooters.
Accounting For Your Side Hustle
Unfortunately, since you make money on your side hustle, the IRS is going to want to take a piece of the action. This requires you to treat this as a real business. It is important to start out on the right foot in the beginning so that you don't end up making a mistake that costs you a bunch of money.
Our Atlanta tax accountants can assist you in this endeavor if you are unsure about the exact steps that you need to take in order to keep your books up-to-date and taxes filed on time. They can also assist with ways that you can offset the income that you make. This is done by looking at your expenses.
Common errors that individuals make when they are starting out their side hustle include the following:
– Failing to keep accurate income records
– Failing to keep accurate expense records
– Not correlating expenses and income
– Failing to separate personal and business transactions
– Failing to account for obligations and debt — in both directions
– Failing to pay estimated tax payments
Having our tax professionals by your side when you start your side hustle ensures that you'll avoid these types of mistakes. They have the knowledge, expertise and experience that is required to successfully handle the intricacies of a side hustle.
Atlanta Tax Accountants Benefits
If you've never started a side hustle due to being overwhelmed by all the information that you are required to know, it may be best if you use a professional accounting team to assist you with your books. You really should avoid starting your side hustle due to lack of knowledge. An accountant can crunch the numbers and help you determine a plan.
Hiring a CPA means that you will:
- Only pay taxes that you owe
- Save time
- Be on time filing appropriate paperwork
An expert can also answer specific questions such as:
– Can I deduct the mileage that I use to collect and distribute the scooters?
– Am I able to deduct the expenses of wear and tear on my vehicle that I use to collect and distribute the scooters?
– How do I account for the electricity expense that is required to charge the scooters?
If you've never started a side hustle to make extra cash, don't let a lack of information overwhelm or stop you. A Fusion CPA seasoned tax professional can get you on the right track. If you're interested in getting help, contact us with any questions.
This blog article is not intended to be the rendering of legal, accounting, tax advice or other professional services. Articles are based on current or proposed tax rules at the time they are written and older posts are not updated for tax rule changes. We expressly disclaim all liability in regard to actions taken or not taken based on the contents of this blog as well as the use or interpretation of this information. Information provided on this website is not all-inclusive and such information should not be relied upon as being all-inclusive.