Crea Recibos De Efectivo Sin Problemas Con Nuestro Generador Para Servicios De Construcción

Cash app receipt generator for Building services

the IRS recently made some key reporting requirement changes for payment apps like cash app vinmo and others if you own a business and if you use cash app or vinmo but fail to comply with the new rules it could dramatically increase your chances of being audited by the IRS and getting into other serious legal trouble today I'm going to explain the new rules for reporting income received through payment apps like cash app and vinmo and also why I recommend that you avoid using these apps allog together if you're a business owner I'm also going to give you some ideas for alternative payment methods that you can use to reduce your risk even further without further Ado let's dive in payment apps like cash app and vimmo used to only be required to send form 1099 K to people who received more than $20,000 in business income through their apps form 1099 K is the form used to report income from payment apps to the IRS however although the old threshold for this form was $20,000 the American Rescue plan act which became law in 2021 1 changed this threshold to just $600 now the IRS planned to start implementing this new threshold form to 99k in 2023 but after considering a lot of feedback from tax professionals taxpayers and payment processing companies the IRS announced on November 21st 2023 that it decided to hold off on implementing the new $600 threshold until tax year 2025 tax year 2024 is going to serve as a transition year and the income threshold is going to be $5,000 for form 1099 k for this year so what does this mean the new rule change means that the IRS is going to be scrutinizing earnings received through payment apps like vinmo cash app and others much more carefully now so if you're a freelancer if you're an entrepreneur if you're an artist who receives business payments through payment apps like cash app or vinbo the IRS will now be aware of these payments if you receive less than $220,000 per year through these apps in fact for tax year 2024 once you receive more more than $55,000 in payments through any of these apps it will trigger form to 99k to be sent to both you and to the IRS so now the IRS is going to have significantly more information about the payments that self-employed business owners Freelancers and entrepreneurs are making now that you know what rule changes are coming for payment app income reporting I want to discuss why exactly I think it's a bad idea for business owners to use these apps in the first place and why I advise my clients to avoid them at all cost okay so other than not reporting income from these apps correctly the biggest risk of using cash app or vinmo for your business payments is comingling funds because these two payment services are so convenient this unfortunately makes it easy for many business owners to accidentally cingle funds from their business and their personal accounts for example a business owner might go to a dinner with some of his friends he might pick up the tab and then his friends send him money the next day through vimmo to cover for their share of the dinner then a few days later the business owner might use the same personal venmo account to pay for business expenses such as inventory purchases contractors advertising and much more so why is comingling fund such a bad thing after all isn't money just money regardless of which account I take it from or add it to well let me tell you right now comingling personal and business funds can actually be a major problem here's why if you cingle funds you could lose your llc's liability protection due to something called piercing of the corporate veil your corporate veil is pierced it means that you could be personally liable for your business's debts and other liabilities so if this happens to you and if your business has major debts called in or if you're sued you could potentially end up losing your personal accounts your personal assets or even your house in a worst case scenario the reason why comingling personal and business funds can result in a piercing of the corporate veil is because it makes it extremely difficult for the courts and the IRS to distinguish between you and your business from a financial cial perspective all of the following activities could potentially count as comingling personal and business funds adding deposits made payable to your business from a client to your personal account making withdrawals from your business checking account to pay personal expenses depositing personal money to pay for business expenses using the same bank account for your business and your personal needs writing business checks for personal expenses so how can you protect yourself now that you know what kind of risk you could be exposing yourself too let's talk about how you can protect yourself first and foremost the best way to protect yourself is to simply not use cash app and vinmo for your business as I already mentioned you can just only use these payment services for your personal payments like sending money to friends and family this is one of the most clear-cut ways to reduce the risk of accidentally comingling personal and business funds I mean if you're already heavily using one or both of these apps for personal payments and this can make even more sense for you there are plenty of other ways that you can can send and receive payments for your LLC if you stop using cash app in vinmo for example you can use wire transfers you can send invoices through QuickBooks you can invoice through stripe and you can send money transfers and so on and so forth but if you need to hire contractors you can also use approved thirdparty services such as upwork task rabbit that allows you to easily integrate your business payment information onto these platforms once your business payment information is integrated you can easily make payments from your business account to Freelancers and contractors this will eliminate the risk of accidentally paying contractors from a personal account let's go over how to protect yourself if you still want to use cash app in vinmo I know there are some of you out there who still probably want to keep using cash app or vinmo for business payments this could be because you are emotionally attached to these apps or because you are just extremely comfortable using them whatever the case might be if you fall into this category you can still do this without co-mingling funds if you absolutely insist on using these apps for for business then I'm going to give you four tips on how to stay protected because I don't want you to run into any trouble number one let's create separate business accounts for both of the apps to avoid comingling personal and business funds you need to create separate business accounts for either venmo or cash app never send or receive personal payments from these accounts only use them for business this is crucial number two make sure your cash app and vinmo accounts are linked to your business account now this may sound obvious but while you're creating your business accounts for cash app or vinmo make sure you link them to your business bank account don't make the mistake of thinking that you can link your cash app or your vinmo business account to your personal account and the IRS won't notice because there's a very good chance that it will and this could result in a piercing of your corporate veil next consider using a different payment app for your personal transactions there are a number of other payment services besides cash app and vinmo and if you want to keep using cash app and vinmo for business then consider using a different app for all of your personal transactions so for example you can use vinmo for your business transactions and you could use something like PayPal for your personal transactions have a CPA or a tax professional assess your payment situation right now you might be not sure whether or not you're comingling your funds or not if this is you then I strongly recommend having a CPA or a tax professional take a look at your payment situation to let you know if you're exposing yourself to any comingling risks as the same goes an ounce of prevention is worth a pound of cure please make sure you're double-checking before making any Financial transactions okay we've covered a lot of important information that is crucial for business owners to know so congratulations on making it this far now before we conclude this video I want to go over a few points that I want you to walk away with regarding cash app and Veno if it is possible I would strongly recommend just avoiding using these for business transactions the IRS has their eyes on these payment platforms I want to protect all of the viewers that watch my channel if you do happen to make a mistake and you commingle funds the consequences can be extreme I mean just think about it do you really want to risk losing your personal bank account or even your house probably not then consider not using these two apps for business transactions now here are the other key points I want you to walk away with the IRS will now be scrutinizing payment activity on apps like cash app vinmo and other significantly more due to a change in rules that requires these companies to report income above $5,000 processed through their apps with form 1099 k that $5,000 threshold will last until 2024 and it will drop to 600 in 2025 if you absolutely do not want to stop using cash app or vinmo for business then consider using a different payment method for your personal transactions make sure these apps are properly linked to your business accounts and consider having a CPA or a tax professional look at your payment methods to make sure that everything aligns correctly if you have any questions about payments from your LLC then feel free to get in touch with my company by clicking on the link below in today's description you can also find a link to my tax Alchemy course in which I teach you powerful tax saving strategies used by the top 1% of wealthiest Americans that could potentially help you reduce your tax bill by 50% or even more additionally if you haven't already go ahead and sign up for the taxfree wealth challenge we will be having our challenge coming up in March you can purchase your tickets right now and make sure that you save a VIP seat I look forward to seeing you as a part of that event and if not I'll see you on the next video thank you so much and cheers