NOTE: The definitions here are for tax purposes. Some words or phrases may have a different meaning even in other financial situations!
audit: is a review/examination of an organization’s or individual’s accounts and financial information to ensure information is reported correctly according to the tax laws and to verify the reported amount of tax is correct.
basis: the amount of your total investment in your rental property. Most often it’s the cost of the property (not including the land) plus expenses of the sale.
estimated taxes: payments sent to federal or state agencies when there aren’t withholding payments or to supplement withholding payments.
deductions: expenses made in your business that you’re allowed to claim against your taxable income.
gig economy: also called sharing economy or access economy—is activity where people earn income providing on-demand work, services or goods. Often, it’s through a digital platform like an app or website.
itemize: the process of an individual or married couple claiming eligible expense that will allow them to reduce the amount of their taxable income beyond the amount of the standard deduction.