You can deduct the expenses when you file the tax forms. Make sure you've kept every receipt.

But it's always best to talk to a professional when dealing with taxes.

Rose

I would definitely consult a tax professional on that. You really don't want to be making decisions about your income taxes based on advice you get from a forum.

Now, my personal opinion is that those are business expenses and would be considered exempt, but I know NOTHING about how to do taxes.

Every year I buy a folder with a few different pockets inside and I put all of my tax statements (papers that have a "W" something on top) in one, receipts in the other, and misc. stuff in another. Then I take the folder (which is quite heavy and loaded with hundreds of papers by then) to my accountant and dump it on his desk, pay him, and leave. He's an accountant and he knows how to do my taxes. I'm an Internet Marketer and I know how to do that.

Depends on location but in Wisconsin, I pay tax on the net profit so in your case that would be the $8,000.

Anytime i buy a service or pay for PPC, Facebook ads and shit like that I pay through PayPal so all i do is print that off and give it to my accountant. done! all receipts in one place. no file folders. i am 100% paperless

I was once a tax professional. Though every country and every states have different tax rules, but the basic principles are the same.

You can get the expenses (15K in your example) deducted. This means you will only be taxed on the remaining 8K, which is your profit.

That's being said, there are some exceptions. Not every expenses you made can be deductible. Also, certain expenses can be deducted twice, at least in my country. So at the end of the day, your taxable profit (profits that is subjected to the tax) is going to be different from the 8K.

Thanks for the info... what about internet as an expense?

Can that usually be deducted in your experiences?

I am going to meet with an accountant, but just thought I would get some input here as well....

let me ask you this. if i make $250k, but i spend $245k, lowest tax rate would be somewhere around $30k. does this mean i owe the government $30k when i only profited $5k?

taxed income = gross income - expenses

You really do need an accountant. If u have a decent one they can show u haow tomsave a lot of money. For instance, last year I found out I'm able to deduct some of my rent because I have a home office and that room is used for my business so I am able to deduct that. The formula used is beyond me, but I know that by paying an accountant I'm saving lots of money and also the piece of mind of knowing that your taxes are done by a professional is priceless IMO.