Smart Tax Moves If You Have Multiple Income Streams | Entrepreneur

"You wouldn't declare Airbnb earnings under your payroll, for example. First, you must set up the correct legal entity, such as a single-member LLC, S-Corp or C-Corp. Ticking the right boxes can significantly reduce your liability. A building contractor with multiple earning streams might benefit from switching from an LLC to an S-Corp, which could potentially save you up to $20,000 in taxes."

"If you are selling one or several properties, you need to check out a 1031 to defer capital gains taxes by rolling your profits into a different investment. Step 2: Pay taxes as if your life depended on it This year, you cashed in on consulting, bonuses, stock options or a side gig. Think ahead, because you don't want April to bring an unexpected tax bill that devastates your cash flow."

Nearly half of Americans have at least two revenue streams, and multimillionaires typically have several more, providing options and financial stability. Each income source follows distinct tax rules and should be treated like a business with the correct legal entity—single-member LLC, S‑Corp, or C‑Corp—to reduce liability. Rental owners should separate expenses to boost deductions and accelerate depreciation. Property sellers can use a 1031 exchange to defer capital gains. Proactive planning and regularly setting aside funds for taxes prevent unexpected April tax bills and preserve cash flow.

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