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Quick Tax Question

Discussion in 'Business & Tax Advice' started by darklegion, Feb 24, 2009.

  1. darklegion

    darklegion Regular Member

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    Hello,

    I am in the process of filing my taxes but I have a quick question.

    I run an incentive website in which users come to my site to complete offers and then I will send them a reward in the mail when they claim the item they want.

    I am not sure what to classify the rewards as part of my expenses.


    I know I should be able to get the rewards claimed as an expense, I just do not know what to label them as.

    If anyone can help that would be great.

    Mike
     
  2. nam6641

    nam6641 Supreme Member

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    ummm... product expense. cost of goods sold.
     
  3. darklegion

    darklegion Regular Member

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    Anyone else able to put in there knowledge? I have been searching Google but I can't seem to find something that fits the description of a reward.

    I was reading about gifts but that isn't really want it falls under. Plus I was reading gifts are only able to be written off up to $25 per person and some people have received over $100 in rewards from my site.