I mainly use PPC traffic for my websites. My question is at the end of the year is this considered tax deductible? Sorry i'm a newbie when it comes to taxes. This year will be the first year i actually earn enough to file for taxes. Thanks
If you file a business form and claim both income and losses, yes it will be tax deductible. To get the best results, I advice paying a tax pro to do your taxes, do not use places like H and R Block, they are not the most experienced in these things. Just make sure you keep receipts and good bookkeepeing records.
Its an expense that goes against your income. Only your net profit is taxed; not your gross. It's not really tax deductible, per say (like a donation), but it lowers your overall profit, so in that sense, I guess, its deductible. That is -very- basic accounting though. If you are even asking that question, you desperately need an accountant.
How much are accountants? This year will probably be the first i ever do taxes. Sorry for the newbie questions!
Accountants are not always cheap. For a good accountant except to pay at least $500 for business tax. That is why people use H & R Block because they charge a fraction of that, but you pay for what you get, as they say. In terms of the PPC advertising it is a standard business expense. Just because you're paying for things online doesn't mean it is not to be reported. Besides, loses usually helps you because as one of the posts above mine said that it lowers your net profit; you have less money to pay taxes off of.
You really don't need an accountant or H&R Block. You could do it yourself as long as you use simple accounting procedures. Every year I use TaxActOnline.com. They ask you questions about personal and business income/expenses. Its really simple.