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Affiliate income & Gross Receipts Tax

Discussion in 'Business & Tax Advice' started by cricket, Mar 24, 2010.

  1. cricket

    cricket Newbie

    Joined:
    Dec 12, 2007
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    Location:
    Albuquerque
    I'm just wondering how those of you who are incorporated in NM (or any state that has it) are dealing with gross receipts tax. I can't seem to get a straight answer* on whether affiliate income is subject to it, although the state taxation representative said it was. If that's the case, it's 7% where I am and there's not really any deductions, meaning if I spend $10,000 on traffic and make $2,000 profit then I pay 7% on $12,000, which is crippling. Do others deal with this by incorporating somewhere without sales tax / GRT, or is there some exemption I'm unaware of?

    * I'm having trouble finding a CPA / Lawyer that understands the business.