Tax question: Web publishers expenses on Schedule C?

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To Americans:

What can a web publisher declare as expenses on
the IRS's Schedule C? This is the net profit from
business form. For instance, what about
web hosting, computer equipment and the like?


Re: Tax question: Web publishers expenses on Schedule C? wrote:
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Exactly.  Get yourself a good CPA.  He should be one of your two best
"business friends".  Your attorney should be the other.

Remove the "x" from my email address
Jerry Stuckle
JDS Computer Training Corp.

Re: Tax question: Web publishers expenses on Schedule C?

In article <5e242c02-5476-44e8-a1dd-db12d9d647c5>, says...
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Regardless of whatever you are told in this group, pay for the advice of
an accountant or tax lawyer.

Re: Tax question: Web publishers expenses on Schedule C?,

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Anything you can reasonably justify as a business expense. It's not that
complicated. Just ask yourself if a reasonable person would consider it
an expense of running your business.

You need to divide the various expenses in to two broad categories;
operating expenses and capital expenses. The easiest way to make that
determination is to consider anything that lasts more than one year and
is worth more than a couple hundred dollars to be an asset and treated
as a capital expense. So a computer would be a capital expense and is
supposed to be depreciated over it's lifespan, which is typically 3
years. Alternatively you can use the "Section 179" deduction to take the
entire value in a single year. If you use tax preparation software this
stuff is very easy.

Computer equipment and certain other items have to be certified as being
used 100% for business. It's best to have another computer that you can
reasonably claim is for your personal business. Otherwise, you'll have
to determine what percentage the computer is used for business and what
percentage is used for personal.

I tote up my expenses in a worksheet and the assign them to the same
categories that are used in the Schedule C.  Hosting and things like
domain names are (as far as I'm concerned) an "Office Expense." Other
categories I typically use are "Advertising" "Car and Truck Expenses"
"Supplies" "Repairs/maintenance" "Taxes and Licenses" and "Utilities."

I do not take any deductions for a "Home Office" or "Travel, Meals and
Entertainment" because that is asking for trouble.

I've been doing my own taxes since I've been self-employed, and that's
close to 25 years now. The first couple of years I paid accountants a
small fee to look over my returns for obvious errors, but after that I
decided I didn't need them any more. I've never been audited, but I'm
assuming that if I were audited the IRS would not necessarily agree with
the way I've done my taxes, but one thing I haven't done is understate
my income. So I figure if I ever do get audited I'll hire someone to
represent me and I'll have to pay something for stuff I've done that the
IRS won't agree with, but I don't think it's anything for me to fear.

In 25 years I've deducted plenty that an accountant wouldn't want to
sign his name to, so if I ever get a bill from the IRS I will just pay
it quietly and consider myself to be still way ahead. If I ever get an
inquiry about a mistake or an oversight I've made, I won't panic and I
won't lie.

You need not fear the IRS and you are not required to hire professional
accountants and lawyers, just to help you do the accounting for a small
business. Of course at some point your business may require the pros if
the record-keeping becomes too complicated or burdensome for you.


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