Question: Devika is sitting with her client, Sudash. He has a side gig as a mobile notary, and uses Venmo for both personal and business transactions.
Devika is sitting with her client, Sudash. He has a side gig as a mobile notary, and uses Venmo for both personal and business transactions. As they wrap up preparation of Sudash's tax return, what is the most accurate advice Devika could give Sudash about keeping track of his taxable transactions on Venmo for
Sudash should:
Input all of his Venmo transactions into his bookkeeping software as unclassified transactions.
Only use Venmo for his business and have his family and friends reimburse him via cash or check.
Set up separate Venmo accounts for his business transactions and personal transactions to prevent comingling of transactions on the Form K
Stop using Venmo for business transactions and only accept cash from his clients to avoid having a record of any taxable transaction.
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