If you are self-employed or run a side hustle for extra income, you need to know what taxes are owed to avoid any penalties or audits. You need to keep very detailed records and file on time. If you use equipment for personal as well as business use, you need to track your usage. Income splitting with family members who you employ must be well documented. Also, be careful claiming losses, they can help you with deductions and refunds but too many could make your side hustle seem like a hobby and you will lose any tax benefits.
“Business owners are responsible for keeping meticulous records of income and expenses, as well as asset purchases.”