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Tax Deductions

Discussion in 'Business & Tax Advice' started by pandadog, Jan 31, 2013.

  1. pandadog

    pandadog Registered Member

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    Hi all, this will be the first time I'm paying taxes on my SEO earnings so I'm really confused as to what I can claim as business expenses. I have the following expenses:

    VPS for running SEO software
    Private proxies
    SEO software: GSA Search Engine Ranker, Kontent Machine, Captcha Sniper, GSA Captcha Breaker, Scrapebox and Ultimate Demon.
    SEO Services: Lindexed, SERPiq and SEOmoz
    About 35k solved captchas from Decaptcher and Death by Captcha
    Also various SEO services from BHW.

    Can I claim all of this stuff as my expenses, even if I don't have an LLC or anything like that? Thanks in advance.
     
  2. takeachance

    takeachance Power Member

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    Those are all legitimate costs of conducting business so yes, costs minus income equals profits and that's what your taxes on ;)
     
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  3. Aaric

    Aaric Elite Member

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    DO you have proper bills/invoices , if yes then you can claim
    You can show income from profession and do not need to go for LLC.
     
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  4. Hierarchy

    Hierarchy Regular Member

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    I would suggest using a good book keeper. They will save you thousands.
     
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  5. pandadog

    pandadog Registered Member

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    I have all my invoices and records kept of all my expenses. So, I don't need to be registered as a business or anything? I'm planning to later this year, but I haven't gotten around to that yet.
     
  6. glodge2002

    glodge2002 Newbie

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    They are correct, you do not need an llc. You do, however, need to properly register yourself as a business in your state. Also, remember, the IRS realizes that people who run businesses from their homes can "fudge" numbers better than most due to where they are and how much is available on the internet these days. In other words, just make sure to CYA. If they decide to audit you, then you shouldn't be nervous about anything.
     
  7. pandadog

    pandadog Registered Member

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    Thanks. Can I register in a state I don't live in?
     
  8. BHopkins

    BHopkins Moderator Staff Member Moderator Jr. VIP

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    You need to see a tax pro. They can help you find other deductions like a home office and related expenses.
     
  9. pandadog

    pandadog Registered Member

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    I'm planning to see my regular accountant later this month. I wanted to be prepared.