Advertising and Tax

Discussion in 'General Business' started by charlinks, Apr 25, 2007.

  1. #1
    When you purchase an advertisement from say Google AdWords or AdBrite.
    Do you have to report 1099 for the money you spent on them?

    My guess is no, but then again it seems anytime you are paid for a service you do receive a 1099, so then in turn shouldn't you also send them?
     
    charlinks, Apr 25, 2007 IP
  2. jmort732

    jmort732 Peon

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    #2
    Nope.
    1099 reports income. If Google (or whoever) pays you as a non employee, they have to fill out a 1099 so that the IRS knows that money went to you. The IRS doesn't care if you spend money, only if you receive it. ;)

    Be sure to track those expenses though, cus advertising costs are 100% tax deductible for businesses.
     
    jmort732, Apr 25, 2007 IP
  3. webmasterlabor.com

    webmasterlabor.com Peon

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    #3
    You don't fill out a 1099 but you do ask for invoices and log these payments as expenses. These expenses adjust your gross income and you pay tax based on the NET income of your business.
     
    webmasterlabor.com, Apr 25, 2007 IP
  4. kingrage

    kingrage Peon

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    #4
    Is it possible to get invoices from Google? Or are you just expected to provide your Visa bill.
     
    kingrage, Apr 25, 2007 IP
  5. jmort732

    jmort732 Peon

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    #5
    For Adwords, you can just log in, and print or save the billing stuff from your account. Keep them for your records, as you will only need the actual receipts if you are audited.
     
    jmort732, Apr 26, 2007 IP