Tax Deductions

Discussion in 'Legal Issues' started by lpxxfaintxx, Dec 10, 2007.

  1. #1
    Well, it's that time of the year again. With the year ending, we need to scrape up the money we have to pay income tax. When you add tax deductions, what do you normally add? So far, I have the following:

    Cost of all hosting fees
    Payments made to my SEO Optimizer
    Advertisements
    Home internet billing fee :)

    Anything reasonable I can add?

    Also, I have a question. I am going to list the domain fees as well, but should I add the domain fee for the one that I made money with Adsense, or should I include ALL domains (most of them are parked pages).
     
    lpxxfaintxx, Dec 10, 2007 IP
  2. Cypherus

    Cypherus Peon

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    #2
    Any computer equipment?
    Travels?
     
    Cypherus, Dec 11, 2007 IP
  3. SuperBlog

    SuperBlog Peon

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    #3
    If you've got a new computer, or computer equipment.
    Depending on what you do, software or e-books, etc. that you've bought.
    Anything that can relate to your job at all.
     
    SuperBlog, Dec 11, 2007 IP
  4. jjpmarketing

    jjpmarketing Peon

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    #4
    Add all your domains. Whether you made money from them or not is irrelevant. An expense is an expense. If you paid multiple years though, I think you have to make it for only the current fiscal year, and not the total amount paid for the domain. Ex: Domain .com for 2 years = $20, you bought it in june, so you would be able to write off $5 this year, $10 next year, and then $5 of that amount the following year in addition to $5 more dollars for the last six months of that year after you renew, if you renew.

    Other write offs:

    Computer Equipment
    Supplies like paper, toner, etc.
    phone bill (if using DSL)
    internet bill
    ebook purchases
    membership fees
    adwords expenses (and similar programs expenses)
    advertising expenses
    software purchases
     
    jjpmarketing, Dec 11, 2007 IP
  5. KMP

    KMP Peon

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    #5
    Go to irs.gov and click on information for businesses. There will be quite a bit of info there, including examples of business deductions. In general, if you use it only for business, it is deductable.

    There has been some good advice preceding me. In addition, if at all possible, see if you have a QUALIFIED home office. Qualified just means it meets are the IRS requirements for a home office, the most important being you use the space regularly and exclusively for business.

    If you are making a decent amount of money it is time to see a tax pro!
     
    KMP, Dec 11, 2007 IP