Blog Tax Deductions, Website Tax Deductions and E-Commerce Tax Deductions
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To those of you running a Blog, Website, or E-Commerce Site (all of which will be referred to as website for the rest of this Blog for the purpose of simplicity) as long as you are showing that you are running your website in an attempt to make a profit, you are legally entitled to write off certain deductions incurred in running your website even if you have no gross income. After a few years though, if you show no gross income from your website, the IRS may consider your website a hobby and may disallow your losses should they audit your return. I am not a tax accountant so don’t take anything here as gospel but just follow up on what I’ve written here by yourself or someone who is doing your tax return. If you are earning Google Adsense income remember to report this. Adsense income at least establishes that you are trying to make money from your website. This article is an update of an earlier Blog Post to use as a Guide for 2009 Tax Deductions.
Here is a List of Possible Tax Deductions for Your Website If Run to Produce a Profit even if You Are Producing No Current Revenue
1. Depreciation off the Cost of Your Computer(s) and Monitor
2. Software Expenses for Your Computer (% related to Use of Website even if its Registry Cleaner for example)
3. Hardware expenses for your computer, like Modems, scanners, etc.
4. Repairs for Your Computer
5. Consulting Computer Services
6. Accessory Equipment for Your Computer like Surge Protectors, etc.
7. Supplies like paper, ink, CDR’s, DVDR’s, etc., again as they relate to your website
6. Depreciation of other related Computer Equipment Like Printers
7. Annual domain registration costs and website hosting expense
8. A Percentage of Your Internet Provider Fees (i.e., if you use the Internet, 50% of the time for your website and you spend $600 a year, you can deduct $300 as an expense).
9. Office Furniture like your chair and desk
10. Any books, newspapers or magazines related to your website/use of the computer for doing business (educational purposes).
12. Phones and phone bills including both cell phones and land phones as long as they are related to your website (even if you just claim a % of expenses as related to the website)
13. A percentage of your rent or Housing as it related to the area of your residence where you run your website including related storage area. For example, lets say you use a 100 square foot area in a 1000 Square Foot Apartment to run your website and you pay $10,000 a year for rent. You could deduct 100/1000 of $10,000 as office rental (10% of $10,000) which would be a $1,000 rental expense. If you actually rent an office for your website, then that full amount could be deducted.
14. A Percentage of your electricity bill based on the % of the area you work from your residence compared to the rest of the residence. Let’s say its 10% again and your electricity bill is $2,000 a year. You could then deduct $200 as an electricity expense.
15. Any related office decorations such as pictures.
16. Any promotional costs for your website like business cards, stationary, press releases, flyers, etc.
17. Postal Mail Boxes or Private Commercial Mail Boxes you rent for your website.
18. Transportation and Vehicles costs related to the Website including gas, car depreciation, maintenance, trips, etc.
Hopefully this Post has given you a basic gist of what you can claim as tax deductions if you run a website with the intent to make a profit even if it shows a loss and as I said you should either research this further for yourself or hire a professional to do your taxes in which case you should discuss these possible deductions with him. Again, if you do your tax return yourself, none of the possible deductions I’ve mentioned should be taken as Gospel and its your own responsibility to research your deductions for yourself but these deductions should give you an idea on what you may be able to write off from your tax return if you operate it for the purpose of producing a profit. You should keep all receipts. Please check out our large Online Discount Gift Store click here and our other Online Discount Stores below which helps support this politically incorrect blog. Thank you.
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