Affiliate Marketing on Azoogle and Taxes

its all about cost of doing business. to get full details consult a CPA or tax laywer but yes you can write off a good bit as a business

 

yup, like internet costs

 

You only really pay taxes on your profit. If you didn't count advertising costs then realistically you are paying tax on money that you have not really earned as it's put back into the business. So if you have paid $200,000 on advertising and have made $1 profit from that and had to pay tax on your advertising costs then you would be well in negative territory.

 

Okay guys, I have a couple more questions for you regarding taxes-

1. Can you write things like '$50 Adwords Credit' off? My intuition says no as it's technically just a free service, but then again, it is a set dollar amount.

2. Are there limitations to write-offs on individual items? The IRS says anything that is "reasonable and necessary" can be written off, but what if I want to write off my 47" LCD TV I use for my business?

I remember reading that you can't even technically have games or anything of that nature installed on a computer you are writing off as a business expense in order for it to qualify.

Thanks,
Scott

 

you could have games, depending on the bussiness and how its worded. heck you can write off a house, im sure you can get your tv.

 

Don't listen to tax advice from someone who can't spell "business" correctly.

I would speak to a tax lawyer about this, unless you are using it to entertain clients or something of that matter, writing off a TV would be difficult to get away with IMO.

 

as i posted earlier spend a few hundred bucks on good CPA/tax lawyer a good one will save u much more than the few hundred u spend.

 

My office has a 47" TV thats in the conference room for presentations and meetings. I am sure you can write off a TV is just matters how you go about it.

 

A good accountant will pay for himself many times over. Form an s-corp, get a tax id, start a business checking acct, get a business credit card, and charge anything remotely related to that card. (Internet access, new computer, office furniture, supplies, ppc, domains, ebooks, *everything*).

Use Excel or quickbooks to keep track of it all. It'll save you time in the long run, and you're already tracking earnings this way anyway (right?). Print out all your records at the end of the year and hand them to your acct.

 

Gee are you a Accountant ?? Writing off a TV wouldn't be that hard for 'business' purposes.

 

No, but I'm studying Finance at University and I've taken several Accounting classes...so that's pretty close.

I'm just saying, don't take free tax advice from random people on a forum. A good tax lawyer will save you money and ensure you aren't breaking any laws.

 

hmm, well, yeah. depending on your business, I suppose you're right. If I build games for a living, I'm sure having games on my pc wouldn't disqualify me but as games have nothing to do with my business, I'm curious as to what the IRS would think.

I've been using my 47" lcd for about 6 months now for my business (about 65% of the time) and the other 35% of the time, it functions as the living room television. So I'm personally wondering what the limitation is.

If, say, I had a 65" LCD that I used for my business monitor, could I write off the entire amount ($6000) if it's used as my monitor or is there a per-item cap amount for how much you can write off?

Certainly a house would be a bit overkill, wouldn't it?

 

haha

Well, logically you could write off only the percent of the TV that is used for business OR up to a certain amount, depending on the business.

You're right though-- it's always best to talk to experts on the subject but I was hoping someone here might offer some insight from personal experience.

 

Hmm.. well, does the IRS care about the size of the TV? I could use a 30" LCD TV as my monitor and I'm pretty sure I could write that off as my monitor, but when you start going into ridiculous sizes (100"), it seems like that might be a huge red flag.

 

Although it makes sense to hire other people to manage your money, I'm asking more for the people just getting started with their business as I've written a post regarding the subject here-

http://www.afftoolbox.com/2007/12/20/affiliate-marketers-mind-your-taxes/

I just wanted to make sure I wasn't giving out bad information. Thanks again for all the great info you guys have given.