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Tax question on affiliate earning

Discussion in 'Business & Tax Advice' started by godang, Apr 8, 2016.

  1. godang

    godang Regular Member

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    Hi,

    I have tax question on affiliate earning and if anyone can give me feedback, I really appreciated.

    Let say I have spend $10,000 on ads (facebook, adwords, etc) to earn $20,000 affiliate products for Year 2015.

    Then, I only earned net $10,000 but I'll be getting 1099 from from affiliate company for $20,000.

    Is all $10,000 ads spend can be tax deductible that I only need to pay taxes on $10,000 of net earning?

    If anyone here with tax expert can give me feedback on this?
     
  2. cruguy

    cruguy BANNED BANNED

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    Well why do you pay for $20k when you make profit $10k.

    You need to report 10k as advertising spent, and show 10k as profit. Each countries has certain tax rules, which country are you from?
     
  3. islandman1010

    islandman1010 Elite Member

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    Well in general thats correct but its going to depend on your country. But generally you only pay tax on your profit, regardless of how much you made or spent. Its basically one taken from the other. Thats very general and simple but basically how it works.
     
  4. godang

    godang Regular Member

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    thanks... in US.

     
  5. Shadexpwn

    Shadexpwn Elite Member

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    Certain 1099's don't have writeoffs, but in general the tax rate is 27% + state taxes depending on what one you're in.

    With 1099 MISC there's room for writeoffs up to a point which should include what it took to get that income. Visiting financial planners could allow you to claim what was actually made unless you know what to do with it (Where to write expenses etc.)

    Don't ever give the tax man your expenses, claim all that you can ;) !
     
  6. cruguy

    cruguy BANNED BANNED

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    Find an CA Consultant, that might help you in auditing the report.
     
  7. godang

    godang Regular Member

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    thanks... so what you're saying is :
    even $20,000 showed on 1099 form, I can just pay for taxes (27% + state tax) on only net income which is $10,000.