1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

How do I write off my taxes for buying twitter and instagram accounts?

Discussion in 'Business & Tax Advice' started by BlackHatsFish, Mar 29, 2016.

  1. BlackHatsFish

    BlackHatsFish Junior Member

    Joined:
    Mar 13, 2013
    Messages:
    154
    Likes Received:
    11
    I've bought over $20,000 worth of accounts via paypal for twitter and instagram accounts how exactly do I file these on my taxes if I sent the payments for the accounts as "Friends and Family" on paypal?
    These were clearly investments but i'm not sure how to file these on my taxes?
     
  2. loedown

    loedown Jr. VIP Jr. VIP

    Joined:
    Jun 29, 2009
    Messages:
    1,584
    Likes Received:
    496
    Home Page:
    I've just used my business bank account. You really should have an accountant on hand if you're spending that much on accounts, means you're making enough.
     
  3. BassTrackerBoats

    BassTrackerBoats Super Moderator Staff Member Moderator Jr. VIP

    Joined:
    Mar 10, 2010
    Messages:
    15,908
    Likes Received:
    29,226
    Occupation:
    I don't actually have a job
    Location:
    Not England
    Home Page:
    I would never send a business expense as a "friends and family" PP payment... that is really not a good idea.

    But, if you have backup in the form of online invoices etc, you will probably be fine but still that is not a standard good business practice.

    As to your question, what kind of entity are you filing as S-Corp, LLC, Sole Proprietor, etc?
     
    • Thanks Thanks x 2
  4. BlackHatsFish

    BlackHatsFish Junior Member

    Joined:
    Mar 13, 2013
    Messages:
    154
    Likes Received:
    11
    I am as Individual Contractor i just started making money this year so i am very uneducated on this topic.
     
  5. danh0001

    danh0001 Regular Member

    Joined:
    Jul 11, 2015
    Messages:
    286
    Likes Received:
    65
    Anything I paid through PayPal I printed out the receipt and add them up as a business expense, also to make sure I go to my PayPal account, I put the date range from January 01/2015 - December 31/2015 (for 2015 tax year) print them all the expenses throughout the year. I also hold on to it in case down the road if there will be an audit. That is how I handle the expenses I paid through PayPal. Since you mentioned that you paid for Instagram and twitter through 'Friends and Family' I am not sure how you will claim, I think you need to consult with your tax preparer
     
    • Thanks Thanks x 1
  6. BassTrackerBoats

    BassTrackerBoats Super Moderator Staff Member Moderator Jr. VIP

    Joined:
    Mar 10, 2010
    Messages:
    15,908
    Likes Received:
    29,226
    Occupation:
    I don't actually have a job
    Location:
    Not England
    Home Page:
    If you are in the USA get with a local bookkeeper to start handling your expenses and quarterly income tax payments as they will set up a system for you going forward.

    For the immediate future, get with a local accountant (does not need to be a CPA but I personally would prefer one) and have them handle your taxes for last year. Don't screw around here, do that right away so you don't get off on the wrong foot with Uncle Sam in your first business venture.

    You need to pay as you go in the USA on a quarterly basis or you'll incur penalties and a bookkeeper will keep you in line there.
     
    • Thanks Thanks x 1
  7. cisa145

    cisa145 Newbie

    Joined:
    Jun 11, 2015
    Messages:
    3
    Likes Received:
    0
    You have bought inventory. Report profit or loss upon sale.
     
  8. BlackHatsFish

    BlackHatsFish Junior Member

    Joined:
    Mar 13, 2013
    Messages:
    154
    Likes Received:
    11
    So I was reading and apparently I'm going to have to file a GIFT Tax Return to the IRS.

    https://www.irs.com/articles/7-things-you-should-know-about-gift-tax

    This isn't something I'm going to be making a habit of. I'll definitely be treating my money online differently now i'm not trying to pay U.S more than I've actually earned.





    Thank you ALL for giving me your time of the day to write me a response. YES I will DEFINITELY be paying Uncle Sam everything he is owed I do not plan on having this on the back of my head forever and will definitely look into a way to get this sorted quarterly thank you.
     
    • Thanks Thanks x 1
  9. customerblast

    customerblast BANNED BANNED

    Joined:
    Aug 7, 2016
    Messages:
    132
    Likes Received:
    29
    Gender:
    Male
    staying on top of taxes will save you a lot of potential heartache later. good move :)