tax issue

Discussion in 'Amazon' started by cxy007, Feb 28, 2008.

  1. #1
    I found that I need to pay 50% for my earned Amazon associate fee. And I know that I can report it as business incoming. I bought a computer to develop the website. Can I report it as expense? What about utilities? Internet access fee? I know I am not using these 100% for the website. Can I do a rough estimate for the percentage I used and then times the cost to be the business expense?

    Thanks.
     
    cxy007, Feb 28, 2008 IP
  2. sirjorgeofculver

    sirjorgeofculver Well-Known Member

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    #2
    Yes, you can report the computer, internet access too, not sure about the utilities though. I wrote off a computer purchase, usps receipts, and internet access for my "business".
     
    sirjorgeofculver, Feb 29, 2008 IP
  3. sirjorgeofculver

    sirjorgeofculver Well-Known Member

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    #3
    oh, and that was in California, check with your local laws
     
    sirjorgeofculver, Feb 29, 2008 IP
  4. cxy007

    cxy007 Member

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    #4
    Thanks for your reply. I am doing federal tax. I think it's the same. One question, we all knows that it's impossible the whole computer is used for a website development only. Also the internet access fee. Do I also need to times a percentage? According to time or bandwidth I used?

    Thanks.
     
    cxy007, Feb 29, 2008 IP
  5. sirjorgeofculver

    sirjorgeofculver Well-Known Member

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    #5
    When i did it, i said i only used it for work, and that i only purchased it for work. I made a lot of money online so I just lumped it all in, and said it wasn't for personal use.

    They went with it.
     
    sirjorgeofculver, Feb 29, 2008 IP
  6. rlhanson

    rlhanson Peon

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    #6
    If you search the irs.gov website, you should be able to find the percentages you can claim for utilities/rent for using your home as a business. Your computer would be considered business equipment to run your business. But be careful about how much you claim it to be part of your business as you may end up paying property tax in the county you reside in.

    Best bet would be to hire an accountant.
     
    rlhanson, Mar 12, 2008 IP