That's super helpful, thanks! Our platform charges a 2.5% fee for each transaction, so that could add up over the year. Do we need to keep any special documentation to prove those fees if we get audited?

Yes, definitely keep documentation! Save monthly statements from your payment platform that show both the gross rent collected and the fees deducted. Many platforms provide year-end summaries that break down these amounts clearly. I also recommend creating a simple spreadsheet tracking each payment, the fee charged, and the net amount received. Having this detailed record will make tax preparation much easier and provide solid documentation if the IRS ever questions the discrepancy between your 1099-K amount and what you reported on Schedule E.

Can you explain more about this allocation? We're in a similar situation with a duplex and I've been guessing at percentages.

Do you include home office expenses in this system too? I work from home and I'm never sure if I should be tracking utilities and rent differently.

I do track home office expenses but slightly differently. For utilities and internet, I calculate the percentage of my home used for business (square footage of office divided by total home square footage) and apply that percentage to those bills. For example, my office is about 12% of my home's square footage, so I deduct 12% of utilities, internet, and rent. I keep a folder with all those bills and have a separate section in my spreadsheet for them. Just make sure your home office is used regularly and exclusively for business - that's a key requirement the IRS looks for.

Credit card statements alone aren't enough. The IRS requires that you have documentation showing what exactly was purchased, not just the amount and vendor. Statements only show where you spent money, not the specific items.

Are you sure about the free products thing? I get tons of makeup sent to me for my beauty channel. Do I really need to figure out the retail value of every single item?? That sounds like a nightmare!

Yes, I'm completely sure about the free products. The IRS considers them "payment in kind" for your services as a content creator. You need to track the fair market value (retail price) of everything you receive. It is definitely a pain, but it's better than getting audited later! I keep a spreadsheet with the product name, date received, and retail value. If the company provides a value in their documentation when they send items, use that. Otherwise, just look up the regular retail price online.

I use it! It connects to your bank accounts and automatically categorizes a lot of transactions. The quarterly tax estimate feature is super helpful too. Worth every penny for me since it saves so much time tracking everything manually.

Do you know if there's any way to track it after it shows the amount but before it shows funded? That in-between waiting is killing me!

Unfortunately there's not really a way to track it during that in-between phase. TPG doesn't give updates until they actually receive the money from the IRS. The IRS "Where's My Refund" tool might show it as sent even while TPG still shows it as pending. The only way to get more detailed information during that waiting period would be to access your IRS transcript online or call the IRS directly. The transcript will show the exact date the IRS scheduled your refund to be sent, which is typically about 1-2 days before TPG receives it.

This literally just happened to me! It showed my amount for 4 days, went back to unknown, then funded the next day. Nearly had a heart attack thinking my refund disappeared 😭

Thanks for this advice! I do have the original invoice somewhere in my files. When you removed the laptop from your fixed asset schedule, did you need to fill out any specific form beyond the Form 4797 that others mentioned?

No additional IRS forms are needed beyond Form 4797 for reporting the sale. The fixed asset schedule update is just for your own business bookkeeping - it's an internal document that tracks all your business assets, their purchase dates, depreciation method, and current status. You'll want to mark the laptop as "disposed" with the date and sale amount in your accounting system. If you use QuickBooks or similar software, there should be an asset disposal function that handles this automatically and creates the proper journal entries. This keeps your business balance sheet accurate and prevents confusion if you're ever audited.

For a 100% bonus-depreciated business asset like your laptop, you'll report it on Form 4797, Part III (Gain From Disposition of Property Under Sections 1245, 1250, etc.). This is because the gain from selling depreciable business equipment is considered "Section 1245 property" gain by the IRS. The entire $850 would be reported in this section as ordinary income, not as a capital gain, because it represents recaptured depreciation. If you're using tax software, it should guide you through this process once you indicate you're selling business equipment that was previously depreciated.