Thread: Question tax nerds!

Well right now this website would be considered a sole proprietorship, since you are the only owner on the account that receives the money. Unless your decide to incorporate or form a partnership to turn this into 47R, you probably need to pay the taxes on it.

*This does not constitute legal advice.

just dont file XD this is sound legal advice

Originally Posted by el jorge loco

Well right now this website would be considered a sole proprietorship, since you are the only owner on the account that receives the money. Unless your decide to incorporate or form a partnership to turn this into 47R, you probably need to pay the taxes on it.

*This does not constitute legal advice.

Yeah, but that would involve more money yearly too.

Why you need to basically set aside a percent of money income against a yearly tax cost. You can write off any material and server\website costs you have billings for, just not your personal time. Anything that is positive is considered income and has a tax cost associated with it. Even a simple K coporation out of Nevada costs something like fifteen hundred to have setup so...



Fasttrak

Problems lies in Google Adsense and Viglink, they do their part and report to the IRS.

The only thing I am not reporting is the Paypal donations, but I doubt I have to since the money never goes out of my paypal account, it actually goes out to pay for server bills.

Well, you could set up an LLC for the 47 Ronin. Pass-through taxation and limited liability. Otherwise, just pay the bills, but add in deductions

*This does not constitute legal advice.

I was curious about that stuff as well. I saw Adsense & Viglink want SS# & other info for tax purposes. I'll probably make a whole $10 vs your $334, but I'll have to look into that as well.

I'm no tax expert but my understanding is that if you're not making any money off of your hobby then there are no taxes due. By making money i mean any and all assets, revenues, incomes, and/or profits that you in any way, shape or form collect and keep for services you provide to all of us silly little like-minded enthusiasts. Keep careful records because the IRS may decide to take a look at what you're doing(not very likely but possible) based on the information being sent to them by adsense etc. and the first thing they're going to want to know is whether you monetarily benefited from said hobby. Basically, No profit=+hobby. If at some point you started making a profit and wanted to pocket some of the money to reimburse yourself for your time, travel or whatever then your hobby would magically transform into a business at which time, of course, you could start itemizing deductions etc. but you'd then have to pay self-employment tax...which can be painful. I think I pay between $300-$500 a year in SE tax just to keep one lousy bathroom clean downtown. The I get the amount I earned added to my income and I get taxed on that as well. Again. good records could save you a lot of grief down the road. It doesn't help to pick up one of those red flags and start waving it around but it can be far less beneficial to hide any red flags the IRS might get a glimpse of. And it is always best to consult a professional if you feel any doubt and you have any stuff that you'd rather not have taken away from you.

*usual disclaimer => there's a million posts in my name proving that I aught not be taken seriously and to do so is an unreasonable risk you've chosen to take upon yourself*


also, if IcE were to incorporate (NOT recommended) I'd recommend structuring as closely held --- okay, now i really don't have a clue


peace

Well I am not sure what to do at this point..

Here are my options:

1. Pay the paypal income tax ($600 less on my tax return) and keep paying the price every year.
2. Pay the paypal income tax and then say fuck you to uncle same and close down the community.
3. Incorporate The 47 Ronin. (may cost me $$$ still every year)
4. Make it a non profit organization. (pain in the ass to get approved for it)
5. Change to a different system to not send me the money, but send the funds to NFo our server provider monthly to pay for the server costs.

Either way I somewhat lose from option 1-4 and not sure if option 5 would really work.