UBB.threads PHP Forum Software Community Forums Resources and Customizing Admin Zone Tax season tips for website owners

With tax season here, I thought it would be nice to see a thread sharing deduction tips for website business owners that we may not have thought of.

Some of you may have already done your taxes, but I always procrastinate. I hate numbers, paperwork and taxes.

I'll start with one tip. If you use PayPal for your site or business, you can deduct the transaction fees PayPal takes.

In PayPal, go to My Account / Reports / 2010 Financial summary

You'll find a nice downloadable .pdf of your history from last year.

Under the fees section, you'll find "Payment fees," showing the total amount of fees charged by PayPal for payments you have received.

Any other tips for deductions?

I've been deducting the fees right along, but I could use some other ideas! I deduct all of the normal expenses, like postage and computer parts, and hosting costs. I'd like to deduct some "office" costs, but I don't really meet all of the requirements for that. What about the internet portion of the cable bill?

I don't run a site as a business but I do have a business I run.
When you say "I don't really meet all of the requirements".
I assume you are attempting to write off in your expenses other costs of a home office.
Such as a portion of your household expenses for a dedicated office space.
That can get tricky since if it is not done correctly you will be subject to a audit from the irs.

In my case it was not worth the bother. To attempt to write off say a portion of my electric bill,isp bill, etc.

I would highly suggest you contact a accountant.
Again in my case my accountant shuddered when I mentioned this scenario.

But in normal stuff I do deduct say my printer and desktop and cell phone as a capital depreciation,Printer paper,ink, stamps and other office supplies.

It is just when you attempt to start trying to use say a portion of your rent,electric, etc that is part of your home and not for a dedicated office building that the red flags come up with the irs.

And if you are a dba and not a corporation it is a double red flag.
Again I say find a accountant if you don't have one.

For me I use H&R block. But the reason is close proximity and they will assist in a irs audit and they support quickbooks which I use.

Another hint for a red flag is you can't show a loss forever.

Web hosting fees is an obvious one. But don't forget the domain name charges for any domains you own (Register.com, godaddy, etc.)

Another item would be software upgrades.
Such as Norton security, Accounting software or other utilities you use for the business.
Paying Mindraven to upgrade your forum or renewing your member access.

Another item could be vehicle expense. Drive to the computer store to buy items or to the post office to mail them.
If the vehicle is not a business deduction you can still take the mileage. currently it is 50 cents a mile. But you do need to keep a mileage log.
This is for the USA,Right.