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IM Home Business Tax Deductions.. What can I deduct?

by AmyKay
6 replies
I'm happy to say I've had my first successful year of IMing. So, it's time to talk taxes.

1. I'm making money as an affiliate. So the various networks will simply send me a 1099, and then I simply report that as extra income when I do my personal income taxes, right?

2. I don't need to register with my state as a business, do I?

3. What can I legitimately deduct as business expenses? These are some things I've been told...

IM products I've purchased, like information products, even?
Software, plugins
Hosting
Phone if I made calls to promote products
Camtasia Studio
My new laptop
Internet Connection

What else?
#business #deduct #deductions #home #tax
  • Profile picture of the author BIG Mike
    Banned
    [DELETED]
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    • Profile picture of the author AmyKay
      Thanks, Mike. That makes perfect sense.

      Okay, mods, you can send this to the post graveyard, I guess.
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      • Profile picture of the author dljmktg1
        I agree with Mike.

        I am an income tax professional and most answers in public forums are little more than opinion based on opinion.

        You can always go to the IRS website ... www irs gov

        They have a search function that's easy to use and get some answers with.

        You can also go to any of the big tax preparation companies. Most are open this time of year, and the good ones do not charge for advice or to answer questions.

        And depending on circumstances, be prepared for some potentially bad news about some of the items you listed.

        PM me if you want a more specific answer or recommendation.


        Dan
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        • Profile picture of the author Tina Golden
          And depending on circumstances, be prepared for some potentially bad news about some of the items you listed.
          That's what I was going to say. Plus, if you aren't registered as a business, that may make a difference, as well.

          Tina
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  • Profile picture of the author windfall_results
    Originally Posted by AmyKay View Post

    I'm happy to say I've had my first successful year of IMing. So, it's time to talk taxes.

    1. I'm making money as an affiliate. So the various networks will simply send me a 1099, and then I simply report that as extra income when I do my personal income taxes, right?

    2. I don't need to register with my state as a business, do I?

    3. What can I legitimately deduct as business expenses? These are some things I've been told...

    IM products I've purchased, like information products, even?
    Software, plugins
    Hosting
    Phone if I made calls to promote products
    Camtasia Studio
    My new laptop
    Internet Connection

    What else?
    Don't forget to look into deducting the portion of your home used as your office (this space must be dedicated primarily for business). Let us say 10% of your home is used for business, then 10% of the mortgage/rent, heat bills, property taxes, etc should be deducted.

    But above all, consult an accountant.
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  • Profile picture of the author TheWealthSquad
    Amy - Congrats on your successful year in IM

    Congrats on getting some good advice - Go find a professional. Without knowing your specifics any information you get may or may not be valid. I do have a checklist of business deductions that we use with our clients if you are interested PM me and I will send it to you.
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  • Profile picture of the author activetrader
    Originally Posted by AmyKay View Post

    What else?
    Amy,

    Get TurboTax. It will walk you through everything. If you have QuickBooks you can load data straight from your QuickBooks into Turbo Tax. If you don't have QuickBooks, enter manually into Turbo Tax.
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    Me

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