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Deducting hosting cost, domain cost, etc..

Discussion in 'Business & Tax Advice' started by thedon23, Jul 19, 2010.

  1. thedon23

    thedon23 Elite Member

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    I've been reading about a lot of people who are in the internet marketing game, and how they are "refunded" (excuse me if my terminology is wrong) from certain costs that a business has. Some may include:

    - gas
    - advertisements
    - supplies
    - domain
    - hosting
    - etc..

    Now, I made $15,000 or so a few months back (I'm 18) and I live in California. I'm going to have to pay a shit load of taxes I'm assuming.

    Any way to get around this (given the above)?
     
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  2. CoyoteAssassin

    CoyoteAssassin Elite Member

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    Congratulations on being ahead of most other 18yo. Too bad IM did not cross my mind while I was 18.

    Yes, you can get around some of this by forming a corporation (a marketing company) and itemizing your deductions.

    I know that you want free advise, but you REALLY need to pay a professional money to do it right. Taking the wrong advise here may cost your thousand's of dollars or trouble with the IRS... and you do not want that on your record at it will forever increase your odds of being reviewed by them.

    Again, go chat with a tax accountant in your city ASAP so that you can get the stuff formed and in place.
     
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  3. thedon23

    thedon23 Elite Member

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    Thank you :)

    I never realized how important it is to speak with a professional to do it for me. My father mentioned it a few times, and also mentioned that he has a friend that can meet with us and get things started for $50 (not bad if you ask me). Didn't think much of it then, but now that you mention it, I better look into it and set up a meeting.
     
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  4. CoyoteAssassin

    CoyoteAssassin Elite Member

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    I'm glad to help. Your father is right. Also, at 18, you are at that age where you start to realize that your parents are smarter than you think but it still takes hearing it from someone else.

    $50 is a great deal. Maybe this is a family friend discount. Also, make sure this person is the right person. It is worth paying $200 to save $2000 come tax time.

    Thanks!!
     
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