Forum Moderators: martinibuster
So, just throwing it out there, and trying to avoid pundits who think 'the more taxes, the better', strictly speaking of _real_ expenses compared to your real income what kind of ratios are you getting? I'm basically paying 20% on the income I've made, which is kinda of, well, a lot, and no matter what expenses I'm coming up with (single guy, no investments) I'm really going to pay through my nose.
Not enough!
i'm new to adsense as of 2006, so i wont need to know the answer until i file next year -
Lets assume i make $1,000 from Adsense in all of 2006 (hey, i'm new.. and realistic).
I plan on deducting my hosting fees, and some minor advertising fees.. Now, lets say that i needed to purchase a new computer for my "online business" (i really do need one).. and let's say this new computer costs $2,100 (Apple iMac 20") - can i deduct that cost even though it's more than i actually made? will this set off any red-flags with the IRS man?
We're on extension as we haven't compiled all the numbers for last year, but it looks like another year of income/expenses more or less balancing out so we don't have to pay taxes. :)
But the basic bottom line is, no matter how much you spend on hosting (say, $50/month * 12 months), if you hit the proverbial jackpot, that hosting will bring ya 10 hits or 10,000 hits.
To the exception of some minor adverstising on adwords/overt while I was experimenting with it, hosting is pretty much the only expense I can honestly claim as a consequence of my business.
Of course I also have a new laptop, a 19" screen, etc, but these are as much just expenses I would have made and not fully because of the business :)
Am I the only one who spends very little and collects a ton of money (relatively speaking)?
Of course I also have a new laptop, a 19" screen, etc, but these are as much just expenses I would have made and not fully because of the business :)
They're for the business.
Repeat after me:
They ARE for the business.
Am I the only one who spends very little and collects a ton of money (relatively speaking)?
I'm the same. Hosting costs, broadband connectivity, and of course business-related hardware are my only expenses. Like you're saying, hosting costs are relatively fixed. $50/month could bring you $1,000/year, $10,000/year or $100,000/year in revenue. That's one of the things to love about this business.
Who else out there is getting stung for not having paid their estimated taxes? I'm staring at a TurboTax screen telling me I owe quite a bit this year. =(
And if anyone cares to share, what exactly are those penalties I've heard about? =/
Who else out there is getting stung for not having paid their estimated taxes? I'm staring at a TurboTax screen telling me I owe quite a bit this year. =(
I knew I was in trouble in December, so I went out and bought a $60,000 Heavy Duty Pick Up and was able to depreciate the whole amount. The down side is that I am stuck with it for 7 years. I also have a brick and mortar company to where the truck will work out nicely. I wouldn't have been able to buy the truck if it wasn't for Adsense. I still owed for the year but I was able to wipe out 1/3 of my taxable income.
I have had it all of 30 minutes and couldn't be happier. :)
Ann
15% of my new drive way, water bill, trash bill, electric bill, new chair, new rug,etc.
so I went out and bought a $60,000 Heavy Duty Pick Up and was able to depreciate the whole amount. The down side is that I am stuck with it for 7 years. I also have a brick and mortar company to where the truck will work out nicely.
Who else out there is getting stung for not having paid their estimated taxes? I'm staring at a TurboTax screen telling me I owe quite a bit this year. =(And if anyone cares to share, what exactly are those penalties I've heard about? =/
My penalties for not paying the estimated tax for 2005 aren't that bad, compared to the actual taxes I owe. Something like 2% of the taxes I owe, this according to Turbo Tax...
Other businesses expenses include hosting, domain renewal, Internet account, postage, phones and advertising.
If you don't have any expenses like this for your site what about going to things like PubCon. That's deductable isn't it? It could certainly help your business.
Tax time, how much have you been able to expense?
Funny you should ask this. My wife answered this for me today:
"not a damn 'nuff" :)
Hopefully she's just missing some receipts. I already paid quarterly taxes to the IRS, but I have a feeling I'm' going to owe more.
Um, are you actually using the truck for your AdSense business? Is your AdSense business the same as your B&M business? Comingling assets creates an accounting headache and is usually just asking for trouble.
That's one advantage of staying a sole proprietor. One schedule C and One Tax Return. There are many who would probably disagree; however, for me the advantages of a sole proprietorship outweigh incorporating.
Most of the major brokerages will help you set them up. I checked around last year and found Fidelity to have the best assortment of plans and the most helpful advisors.
That's one advantage of staying a sole proprietor. One schedule C and One Tax Return. There are many who would probably disagree; however, for me the advantages of a sole proprietorship outweigh incorporating.
You can set up an LLC and in most cases have even better liability protection than a corporation. Yet you are still treated similar to a sole proprietorship for tax purposes (if you elect to have your company treated as a pass through entity.)
Internet run businesses just don't fit into the "tax forms" as printed --grrr.
90% of car related expenses
30% of energy costs im my apartment
80% of telephone fees
100% of internet ISP, hosting and domain names
100% notebooks and digital camera
What I pay my wife for translating
My question is what classification Hosting should be put under
I mad a sub account under "telecommunication expenses"
One schedule C and One Tax Return.
Thank goodness for self employment 401K. It has higher contribution levels than normal SEP-IRA. I was able to stash maximum allowable level + 25% of business profit.
hmm...I didn't think about a 401k for self employed. Didn't even know they existed.
Gonna have to look into that. Thanks!
