Its TAX Time

smolodoy · 01-07-2011, 01:15 PM

Ive began getting some tax papers from CPA companies and was wondering how do you guys do your taxes, do you pay them all. I mean I'm spending more then a $1,000 just on the promoting the product, seo cost, hosting etc. So how do you prove all that and how do you work it out? Any advice? Thank yoU!

Kenster · 01-07-2011, 02:36 PM

I mean I'm not a tax accountant and have an accountant do all my stuff because it gets a bit complicated when you are dealing with larger numbers, but if you are just dealing with a few hundred or thousand bucks, you can probably just give all your cost,rev,net income info to whomever does your taxes normally. If you have a company set up you will need to submit its own return unless it passes through to your personal return.

The most important thing in the IRSs eyes is that you report your income. Things get a little hairy on the cost side sometimes

And of course this isn't professional advice, speak to your accountant or tax preparer

jeffrey73 · 01-07-2011, 05:00 PM

Quote:

Originally Posted by smolodoy

Ive began getting some tax papers from CPA companies and was wondering how do you guys do your taxes, do you pay them all. I mean I'm spending more then a $1,000 just on the promoting the product, seo cost, hosting etc. So how do you prove all that and how do you work it out? Any advice? Thank yoU!

It's easy. Just calculate your profits vs. your losses, and document them. Then just give that to your CPA/Accountant with all the verified bank statements.

ChrisBa · 01-07-2011, 08:36 PM

Quote:

Originally Posted by smolodoy

Ive began getting some tax papers from CPA companies and was wondering how do you guys do your taxes, do you pay them all. I mean I'm spending more then a $1,000 just on the promoting the product, seo cost, hosting etc. So how do you prove all that and how do you work it out? Any advice? Thank yoU!

Find an accountant, in most cases they are worth their weight in gold

ajensen · 01-07-2011, 10:59 PM

Always talk to a tax specialist or accountant if you have questions. Just make sure you report your profit or loss on your taxes. Also you should keep all documentation such as receipts, etc. Also, if you make enough money make sure you are paying taxes quarterly.

smolodoy · 01-08-2011, 11:06 AM

But how do I prove all the fees that I'm paying for SEO, promotion, advertising, and other stuff, when I pay them all through my Brothers Paypal account? Will all that count?

CPATrendPhil · 01-08-2011, 12:03 PM

Quote:

Originally Posted by smolodoy

But how do I prove all the fees that I'm paying for SEO, promotion, advertising, and other stuff, when I pay them all through my Brothers Paypal account? Will all that count?

It counts as long as its coming out of your pocket. Just keep records of expenses. If you're using paypal, print out your expenses from there and shoot it over to your accountant.

Revenue - expenses (anything pertaining to your business) = net income. Net income = what you pay taxes on.

You can write off SEO fees, advertising fees, hosting, any jobs you've hired out, design, etc. Anything that you've invested into your business or any expenses that pertain to it, write it off. Cell phone, car (be careful with this one lol).

Definitely should have your own paypal account though. Also, when paying taxes, you don't have to prove anything unless your numbers don't look right to the IRS, which is when they'll audit you. Always keep track of your expenses as they come and you'll have an accurate number to write off. But don't claim you earned $10k net income for the year and go buy a house and Ferrari

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01-07-2011, 01:15 PM	#1
smolodoy HyperActive Warrior War Room Member Join Date: Mar 2009 Posts: 436 Blog Entries: 3 Thanks: 8 Thanked 11 Times in 5 Posts	Its TAX Time - How do you do your Taxes? Ive began getting some tax papers from CPA companies and was wondering how do you guys do your taxes, do you pay them all. I mean I'm spending more then a $1,000 just on the promoting the product, seo cost, hosting etc. So how do you prove all that and how do you work it out? Any advice? Thank yoU!

01-07-2011, 02:36 PM	#2
Kenster Krazy Kenster War Room Member Join Date: Jan 2009 Posts: 5,111 Blog Entries: 11 Thanks: 672 Thanked 2,009 Times in 885 Posts	Re: Its TAX Time - How do you do your Taxes? I mean I'm not a tax accountant and have an accountant do all my stuff because it gets a bit complicated when you are dealing with larger numbers, but if you are just dealing with a few hundred or thousand bucks, you can probably just give all your cost,rev,net income info to whomever does your taxes normally. If you have a company set up you will need to submit its own return unless it passes through to your personal return. The most important thing in the IRSs eyes is that you report your income. Things get a little hairy on the cost side sometimes And of course this isn't professional advice, speak to your accountant or tax preparer
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01-07-2011, 10:59 PM	#5
ajensen Warrior Member War Room Member Join Date: Jun 2010 Location: In my house Posts: 104 Thanks: 15 Thanked 22 Times in 12 Posts	Re: Its TAX Time - How do you do your Taxes? Always talk to a tax specialist or accountant if you have questions. Just make sure you report your profit or loss on your taxes. Also you should keep all documentation such as receipts, etc. Also, if you make enough money make sure you are paying taxes quarterly.

01-08-2011, 11:06 AM	#6
smolodoy HyperActive Warrior War Room Member Join Date: Mar 2009 Posts: 436 Blog Entries: 3 Thanks: 8 Thanked 11 Times in 5 Posts	Re: Its TAX Time - How do you do your Taxes? But how do I prove all the fees that I'm paying for SEO, promotion, advertising, and other stuff, when I pay them all through my Brothers Paypal account? Will all that count?