Webmaster's tax deductions?

Starting to think about taxes already I was wondering, are things like domain registration and web hosting a deductible business expense? Any other related things deductible?

 

Of course!!!! Costs related to your business are!!! What costs would you NOT have if you didn't have your web business? Odds are most if not all of them are tax deductable.

Disclaimer: I'm no CPA! I use Turbotax!

 

Hosting
Domain registration and fees
software
office space
computer hardware
new ferrari

Thats my list (except for the last one)

If you have a big income, talk to a tax accountant (not just a CPA) they can save you thousands of dollars & help you avoid doing things that will get you audited.

 

Cutter, do you know at what price level you have to start depreciating computer hardware instead of just expensing it in the year of purchase?

I do image heavy sites so I figure the new digital SLR should be deductable too.

 

You can deduct computer hardware all in the first year if it's worth less than around $100,000. It's called a 179 deduction. See details here.
Update: Looks like $105k is the limit for 2005 tax year.

 

Go to a good accountant! Keep reciepts of any product/service you have ever used in your business, mielage for trips to the office store to buy that new printer/fax, etc. The first year I was in business for myself I tried to keep track of the books and taxes, now I just send everything over to the accountant. He does good work, his services are a deduction which saves me $$$ not to mention his understanding of the tax law saves me even more $$$, well worth the extra expense in order to save $$$

Max out any retirement plans you can, this option alone saves me a few bucks every tax year

 

Thanks for the advice guys. I know I probably probably should hire an accountant, but the price would seem to outweight the savings for a small time player like me. I'm just looking to see if their is any good deductions out there for web related stuff that I had overlooked. Got a couple more ideas now

 

That'll be $99.95 via PayPal please!!

 

Nintendo when are we supposed to get started on our taxes. Do we receive info in the mail from the IRS?

This is my first time getting prepared for anything like this.

 

I started back in....November when I got TurboTax!

Did you save recites, bank statements, anything on paper, that proves you bought something/paid for something web related!! (If not, don't panic, my first two years were my learning years, 1999 and 2000.) Had I got audited for the year 2000, I would of probably been screwed, being the learning year when it comes to saving proof + most money earned year!!!!! For 1999 about all I got are tax forms printed out AFTER doing taxes!!!

Since I started in 1999, I've generated...



One is expenses, one is earnings, one is bank statements, one is IRA, one is....and so on, for each year. As soon as I start getting paper for this year, 2006 ones'll be made!!!! I *think* it's seven years you need to save everything for. I'm not sure how long you have to worry about the IRS knocking at your door!!!

Back in the 90s I got forms from both state and federal in the mail early in January, but once I showed signes of being a business, after 1999...nope, you're on your own!!!

I've used TurboTax ever since 2000 and don't plan on changing. I have yet to ever get a tax return....returned because of an error since I started using TT.

Disclaimer: I'm no CPA, but IMO, TT is just as good, for a much lower price. Oh, and all this info is just for the USA.

 

You might surprise yourself.
No matter what you're earning, a good accountant will do all they can to deduct ANYTHING they can - and the saving is well worth the small accountant fee.

I figure I will pay an accountant around $50 to do this for me, and I will probably get deductions worth a few hundred.