Do you pay 2006 taxes on December's income?

Discussion in 'AdSense' started by powwka, Nov 30, 2006.

0
  1. #1
    Because you don't receive the check until January, so what year does it count for?
     
    powwka, Nov 30, 2006 IP
  2. latoya

    latoya Active Member

    Messages:
    749
    Likes Received:
    73
    Best Answers:
    0
    Trophy Points:
    70
    #2
    Whatever you earned between January 1 and December 31, 2006 counts as 2006 income.
     
    latoya, Nov 30, 2006 IP
  3. DomainMaster

    DomainMaster Banned

    Messages:
    576
    Likes Received:
    19
    Best Answers:
    0
    Trophy Points:
    0
    #3
    If you receive the check in January it won't count for the previous year.
     
    DomainMaster, Nov 30, 2006 IP
  4. darkbreed

    darkbreed Peon

    Messages:
    316
    Likes Received:
    8
    Best Answers:
    0
    Trophy Points:
    0
    #4
    darkbreed, Nov 30, 2006 IP
  5. Tearabite

    Tearabite Prominent Member

    Messages:
    4,629
    Likes Received:
    429
    Best Answers:
    0
    Trophy Points:
    300
    #5
    talking about taxes..
    How many of you deduct things like your internet bill, a new PC, etc ? and, do you deduct 100% of those costs, or only a partial % because you also use those things for personal use?
     
    Tearabite, Nov 30, 2006 IP
  6. Bluecircle

    Bluecircle Peon

    Messages:
    114
    Likes Received:
    1
    Best Answers:
    0
    Trophy Points:
    0
    #6
    It depends. I paid $2800 for my new laptop and my accountant said to write it 100% off because I do all my business on it.
     
    Bluecircle, Nov 30, 2006 IP
  7. Tearabite

    Tearabite Prominent Member

    Messages:
    4,629
    Likes Received:
    429
    Best Answers:
    0
    Trophy Points:
    300
    #7
    Yeah, i was planning on writing off 100% of my new PC, even though we do occasionally use it for personal email and the personal checkbook (about 1%).. I'm worried about writing off 100% of my internet bills though, because we do share the connection with another PC in the house..

    Any suggestions?
     
    Tearabite, Nov 30, 2006 IP
  8. dethfire

    dethfire Well-Known Member

    Messages:
    230
    Likes Received:
    0
    Best Answers:
    0
    Trophy Points:
    118
    #8
    I thought the max write off of an item is 30%
     
    dethfire, Nov 30, 2006 IP
  9. Colbyt

    Colbyt Notable Member

    Messages:
    3,224
    Likes Received:
    185
    Best Answers:
    0
    Trophy Points:
    210
    #9
    I don't see any way that you could justify a 100% write off on the internet fees. After your posting here I would only go 98% on the new computer.

    But then I am conservative when it comes to this kind of stuff. It is my firm intention that if I ever get audited they will owe me money when we are done. Good record keeping allows so many legimate deductions that there is no need to risk a chancy one.

    Note to all: written records required to validate claim. Do you want a time clock on your connection?
     
    Colbyt, Dec 1, 2006 IP
  10. bargainr

    bargainr Peon

    Messages:
    223
    Likes Received:
    4
    Best Answers:
    0
    Trophy Points:
    0
    #10
    How you recognize income will dictate whether or not December earnings is considered income. If you recognize it when you perform the work, then yes you would consider it income. If you recognize it when you are paid, then you earn it when you cash the check (not the date of the check or when you receive it). (it's called cash vs. accrual)

    As for expenses, you're supposed to deduct only that which is used by your business. If you only use it 50%, deduct 50% of the cost. For equipment, if it's all business then you're talking about either spreading it out across years or taking it all this year, it's called a Section 179 deduction.
     
    bargainr, Dec 1, 2006 IP