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Is the a good way to fund my IM stuff?

Discussion in 'BlackHat Lounge' started by dgfalk, Feb 11, 2012.

  1. dgfalk

    dgfalk Power Member

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    Whenever I get paid I take 30% of that money and put it in a separate savings account for taxes. Lets say for example I get $1000, Ill put $700 in my "spending account" and $300 in my "tax account".

    No lets say I want to spend $100 on backlinks, can I just take that out of my 300 "tax account" since it will be a write off? Im asking cause instead of just having that money sit in the tax account all year doing nothing, id like to reinvest it to make more money.

    Is this a smart idea or should I just leave the tax money alone and only spend the other money?
     
  2. bertbaby

    bertbaby Elite Member

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    First make the $1000 and then decide. And if you take a full $300 out in backlinks you still owe money on the remaining $700 in earnings after your backlink write off.
     
  3. dgfalk

    dgfalk Power Member

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    I already made the money last month, a little over $900 that ill get at the end of this month. For some reason I wans't thinkin right, but ya Id still have to owe on the $700 so its probably better to just leave that tax money untouched and set aside. The goal is come tax time next year I dont want to owe a shitload of money and not have it.
     
  4. MiLiTARYiV

    MiLiTARYiV Senior Member

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    your doing it wrong. U wouldnt pay tax on the 1k because its not profit. If it took you $250 adwords to make that 1k then you would only be taxe on the $750 instead of 1k

     
  5. smallgiant

    smallgiant Regular Member

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    You are taxed on ALL income and revenue from the year. This is regardless of whether it was profit or not. Expenses can then be written off for business. You need to do an itemized deduction and not standard. I suggest you get a CPA or professional at tax law.

    I just did my taxes this past Thursday. I have so many sources of income it is crazy for my CPA. I suggest you hire someone though. Definitely the best way to get everything done.