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Lines of credit are arrangements between lenders and borrowers that gives a maximum loan balance for the borrower to pull funds from. With a line of credit, you can borrow funds at any time as long as you don't exceed the maximum credit line amount amount. For a small business owner, the largest advantage of a line of credit is the flexibility. You don't have to use the total amount you're approve for, which means you don't have to pay that total amount back.

Lines of credit come as secured, unsecured, revolving, non-revolving and a demand lines of credit. With a revolving credit line, you're able to continuously borrow money until you've reached your credit limit. Like a credit card, whenever you make a purchase, that amount is taken from your total credit limit, and whenever you make a payment, your credit limit goes back up.

The IRS is cracking down on payments received through apps, such as Cash App, Zelle or Paypal, to ensure those using the third-party payment networks are paying their fair share of taxes. This policy shift will mainly impact business owners using third-party payment network providers.

What You Need To Know
Payments of $600 or more through third-party payment networks like Venmo, Cash App, or Zelle will now be reported to the IRS

The IRS is cracking down on the apps to make sure everyone is paying their fair share of taxes

This new rule does not apply to payments received for personal expenses

The new tax reporting requirement will impact your 2022 tax return filed in 2023