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  1. #1
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    I have a very important tax question
    So a buddy of mine is in Indonesia. I'm in California. He can bring me traffic to my website. I agree to pay him 60% and I keep 40% from ad revenue. All the money I make goes to my account and I have to pay him the 60% of the 100% when the money goes to my bank.

    How can I write this off as a business expense? (I'm in process of getting a business license.)

    Is there any way to not pay taxes on the 40% I get? And If I absolutely have to ( ) how much would I have to pay in taxes? If I were to offer this to someone else, would it be worth it if we pay them 10% and we split the remaining 90%? The person getting the 10% would have to pay taxes on 100% of the ad revenue because it will be going into their account.

    Am I right? This is all strictly rookie logic.
    Last edited by Digitalgangstor; July 1st, 2011 at 12:38 AM.

  2. #2
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    Please anyone? I want to have this resolved ASAP.

  3. #3
    ...and a Pirate's heart. Convergence's Avatar
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    Another person posted something similar here this past week.

    Suggest you contact a local accounting firm.

    Good luck...
    Salty kisses, Sandy toes, and a Pirate's heart...

  4. #4
    Full Member gcarson's Avatar
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    I like how you have your first post at 12:30 AM EST and then 1.5 hours later ask where are all the responses when most of the board is either sleeping or watching the tonight show. I am not an accountant and you should ask one.

    Quote Originally Posted by Digitalgangstor View Post
    How can I write this off as a business expense? (I'm in process of getting a business license.)
    Just like you would when you buy a pen, , computer or any other legit business expense.


    Quote Originally Posted by Digitalgangstor View Post
    Is there any way to not pay taxes on the 40% I get?
    Sure, hire Nicholas Cage's tax guy

    Quote Originally Posted by Digitalgangstor View Post
    And If I absolutely have to ( ) how much would I have to pay in taxes? I.... This is all strictly rookie logic.
    The above accountant should be able to help you avoid taxes

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  6. #5
    The 60% that you are paying for traffic is a normal business expense and is deductible. The remaining 40% is revenue. You can deduct all of your other business expenses from that 40% to arrive at your taxable income.

    You will need an accountant. The services of an accountant is worth the cost, and you can deduct that from your taxable revenue too.

  7. #6
    Member pokerturkey's Avatar
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    Quote Originally Posted by Shoe-Shopping-Spree View Post
    You will need an accountant. The services of an accountant is worth the cost, and you can deduct that from your taxable revenue too.
    And OP's question is a pretty straightforward one that most basic level accounts--who costs very little--can handle for you.

  8. #7
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    You guys suck. You didn't even give me any answers.

  9. #8
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    You got answers, go talk to an accountant.


  10. #9
    The Seal of Aproval rematt's Avatar
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    Quote Originally Posted by Digitalgangstor View Post
    You guys suck. You didn't even give me any answers.
    Digitalgangstor, as Trust pointed out, you did get answers, I'm sorry that you didn't find them particularly helpful.

    And while we were not able to solve your original problem, perhaps we can help you with another issue that you seem to be experiencing. One of entitlement. For some reason you feel that the members of this forum have some obligation to solve your problems. That isn't really the way things work on a forum. We are affiliates, affiliate managers and network reps. While some of us may have some experience with tax law and accounting, most would probably be reluctant to give specific advice that could possibly get you in a lot of trouble.

    Now back to that entitlement issue. You'll notice that you didn't pay a penny when you joined here. You may also notice that no-one said "pay me and I'll provide an answer". If you had payed for information and didn't receive what you paid for I'd agree that you have every right to be indignant. However, the members that responded made every attempt to steer you in the right direction and not one of them asked to be compensated. I would have thought a "thanks for trying guys", not "you guys suck" would have been much more appropriate. But that's just me.

    Let's work on your manners and see if we can make a few more friends here, 'k? And who knows, maybe someone will be able to answer your next inquiry more to your satisfaction.

    Good luck.

    -rematt
    "I know that you believe you understand what you think I said, but I'm not sure you realize that what you heard is not what I meant." - Richard Nixon


  11. #10
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    That message that you just typed was nothing related to the topic. That much effort being put into describing "entitlement" could've been well spent if it was actually related to the questions I asked. Sorry if you felt I offended the others. It was a valid response, after all if I wanted an accountant I would've gone there first. Free is better than paying indeed.

  12. #11
    Super Dawg Member Phil Kaufman aka AffiliateHound's Avatar
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    Well-chosen screen name.
    Since June 10, 2012 a vegan aarf but still writing the Hound Dawg Sports Blog
    "If you don't have time to do it right, when will you have time to do it over?" -John Wooden;
    "Raj, there’s no place for truth on the internet." -Howard Wolowitz[/SIZE]

  13. #12
    The Seal of Aproval rematt's Avatar
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    Quote Originally Posted by Digitalgangstor View Post
    That message that you just typed was nothing related to the topic. That much effort being put into describing "entitlement" could've been well spent if it was actually related to the questions I asked. Sorry if you felt I offended the others. It was a valid response, after all if I wanted an accountant I would've gone there first. Free is better than paying indeed.
    Apparently teaching you manners isn't going to be as easy as I had hoped. No problem, I can be as patient as you are rude.

    First, consider this. This is an affiliate marketing forum. Not a forum of tax accountants. While there is no harm in HOPING that someone might have the response you desire, it would seem foolhardy to me to actually EXPECT an appropriate response.

    Second. This IS an affiliate marketing forum. It is conceivable that one day you actually may need help with an affiliate marketing related question that someone here could possibly help with. What do you think the odds are that anyone will actually help after your introductory post?

    Third. Would you actually prefer that someone that knew absolutely nothing about tax accounting just spouted off an answer? One that could possibly cost you a fortune in fines or worse? Everyone gave you the answer of what THEY would do in the same circumstance.

    Now you have a couple of choices. You can stick around become part of the community and find out all of the ways that ABW can help you grow as an affiliate, or you can go away mad. Frankly, I don't care which you choose. But only one of those choices can actually do you any good. You decide.

    Good luck.

    -rematt
    Last edited by rematt; July 3rd, 2011 at 06:54 PM.
    "I know that you believe you understand what you think I said, but I'm not sure you realize that what you heard is not what I meant." - Richard Nixon

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  15. #13
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    Rematt. Once again. Thank you for wasting 40 seconds of my life that has nothing to do with the topic. The amount of time you took to type that could've been put to good use, looking to help me find an answer? Nonetheless, you make a valid point, better to have sound advice than faulty advice. In this, you were correct. Kudos.
    Last edited by Digitalgangstor; July 4th, 2011 at 02:12 PM.

  16. #14
    ...and a Pirate's heart. Convergence's Avatar
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    Perhaps this will be helpful to you and others...

    http://www.irs.gov/pub/irs-pdf/p535.pdf
    Salty kisses, Sandy toes, and a Pirate's heart...

  17. #15
    ABW Founder Haiko de Poel, Jr.'s Avatar
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    Link

    Your Welcome
    Last edited by Haiko de Poel, Jr.; July 4th, 2011 at 10:06 PM.
    Continued Success,

    Haiko
    The secret of success is constancy of purpose ~ Disraeli

  18. #16
    Classic Rocker Mack's Avatar
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    Quote Originally Posted by Digitalgangstor View Post
    Please anyone? I want to have this resolved ASAP.
    Just quit paying your taxes and you don't have to worry about it.

    Use the money you would normally give to the government (since they would just squander it anyway) and buy drugs, booze, things to make you forget all about your taxes. Then it'll never be a problem again.

    Hope that helps. Let us know how it works out for you.

  19. #17
    Full Member gcarson's Avatar
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    Quote Originally Posted by Digitalgangstor View Post
    Is there any way to not pay taxes on the 40% I get?
    I'm sorry you didn't get a real answer to this question other than 'see an accountant' so I'll go ahead and give one to you, free of charge of course its its apparent you don't like paying for anything.

    Since we are in an internet business and can do it from anywhere, I suggest moving to a country like Somalia where there is no government and no taxes. You won't have to pay a dime to those greedy governments who will just blow it on unnecessary things like a police force, roads, fire protection etc etc.. you know, all the things you never use anyways. Of course, you'd better spend your money fast as I hear the life expectancy is much less than in the US given the fact that no one pays taxes to a government who will protect their basic rights. Its a minor trade off to keep that extra 10% (I'm assuming you're income is under $8,500 a year which puts you in the lowest tax bracket).

    There. A real answer to your question. Hit the 'thanks' button if you think so as well.
    Last edited by gcarson; July 5th, 2011 at 08:34 AM.

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  21. #18
    ABW Ambassador JoyUnltd's Avatar
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    We're neither professional accountants nor tax advisors here...you're asking these questions in the wrong forum. You can get free professional advice regarding accounting & tax issues here.

    Google "free accounting advice" or "free tax advice" for many more links.
    Renée
    Pay no attention to that woman behind the curtain. -Wizardress of Oz

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  23. #19
    The Seal of Aproval rematt's Avatar
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    Digitalgangstor, now you've received a few excellent answers and made some new friends along the way. It's a good day.

    -rematt
    "I know that you believe you understand what you think I said, but I'm not sure you realize that what you heard is not what I meant." - Richard Nixon

  24. #20
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    Thank you for so much.

  25. #21
    ABW Founder Haiko de Poel, Jr.'s Avatar
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    N/m
    Last edited by Haiko de Poel, Jr.; July 5th, 2011 at 09:07 PM.
    Continued Success,

    Haiko
    The secret of success is constancy of purpose ~ Disraeli

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