Of course you can. Your accountant can give you all the details.
Don't forget, you'll need a receipt.
That depends on the country you live in, and the tax rules it imposes on you.
|I was wondering, can you write-off a computer you bought or the internet you're using? |
Because you get paid by google, and it's kinda like a job because you have to pay taxes? To be honest I don't know much about taxes and the irs...
Yea, I just wanted to know if you could write off stuff as a google publisher, or are write-offs permitted for people who own a business?
Shure in Austria. I even set up our summer holidays in a way to write the costs off.
|azn romeo 4u|
I live in the U.S. in oregon.
Like what type of receipts would you need to use. Like monthly statment bills from credit cards or something?
Also how much money would need to make to be able to write off some items? Is there some type of ratio or something? Sorry I'm a noob...just started my website. I'm probably going to make around 3000 for the first year using google.
I just bought a computer in January for 1200, and pay about 50 bucks a month for internet. would I be able to write off that much base on my google earnings?
You use the compuer and internet access for nothing but business? I sure hope so...
We have set up as a small business because our earnings from Google means that we are liable for tax. If you aren't a tax payer, and the earnings are under your personal allowance you have to declare it, but I guess unless you are paying tax on your earnings you can't offset costs against anything.
However, if you do pay tax then it may be best to declare the earnings as business earnings. It might be easier to set costs against income that way. You need to contact your local inland revenue office for advice on this.
In the UK, the tax office will allow you to offset the value of the PC against taxes. However, it may be regarded as a capital asset and they will allow you to offset 25% of the value per year.
As regards costs such as webhosting you should be able to offset all of the cost against profits for tax purposes. Unless you can prove that you use the internet connection solely for business use (and not for any other purpose such as the rest of the family's use) then you won't be able to offset all of the cost of it against profits, but they might go for a portion of it. Again, only the local inland revenue office can tell you this.
The general rule is that you can write off only business related expenses and you generally do that on a schedule C. My understanding is that If you
use the computer for personal more than biz it is NOT a deduction. If all biz it IS a deduction. If combination I'm not sure how you would treat it.
The type of receipt you need is the one bill you were given for your 1200. Proof of purchase.
My best understanding is that you can write of whatever PERCENTAGE of costs go directly
to maintain or operate your business. Vacations in Austria would probably not pass the 'stink test'
for USA tax returns (sadly!) but most if not all of your online computer expenses should.
If you use part of your house exclusively for biz, then that can be pro-rated too, but be careful!
The IRS has clamped down on obvious abuses there, and you risk causing an IRS audit. - Larry
Azn, for 3k, it's probably not worth going to an accountant (unless you already do for your other income). If you save all your receipts and use a program like Turbo Tax at the end of the year, it'll walk you through what percentage of your computer and Internet you can write off. You don't have to use it exclusively for business purposes to write it off, you just don't get to write off 100%. To help yourself, keep all your receipts (web hosting, domain name registration, office supplies, computer equipment, etc).
By the by, if you're self-employed, you're actually supposed to pay taxes quarterly rather than just sending in a big check for Apr. 15th. If this is your first year with reporting Adsense earnings, you won't be penalized, but next year, you'll have to pay quarterly on that income. (Turbo Tax is fine for figuring this stuff out, too.)
|Vacations in Austria would probably not pass the 'stink test' |
for USA tax returns (sadly!)
Depends on Your AdSense revenues.
I think europaforvisitors can write of any travel in Europe.
My last spain trip was not only for AdSense but also for a realtor wanting to have some photos from real estate to sell. So it's shure to write off.