When you guys are talking about how much you've made daily...
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Aside from pure expenses, it's always wise to set aside some for reinvestments too. Put some of the money back into your projects to boost their power even further.
Nearly half of my earnings are going to Adwords (really my only substantial costs), about 45%. In many industries over 100% ROI would be extremely good, but it can be much better with Internet Marketing. This is why I am now kicking out programs that have poor tracking and thus don't allow me to fine tune my adwords campaigns.
I am aiming for about 25% costs. If a program would pay out really quickly I'd accept higher costs but I only have slow payers.
I am aiming for about 25% costs. If a program would pay out really quickly I'd accept higher costs but I only have slow payers.
Since most of my stuff is powered by organic traffic, it's about 80% in my pocket, the rest is for adwords, hosting, programming, design, etc...
HarveyJ
He is - THE CACTUS!
After expenses, taxes and sundries, I'm sitting on about $800/week.
Not exceptional, but I can live comfortably off of that, and not have to work too hard.
TIP: If you're running legit, and all your AM stuff is done from home, theoretically, you can say your houses rent/mortgage is a business expense and write that off your tax too
Not exceptional, but I can live comfortably off of that, and not have to work too hard.
TIP: If you're running legit, and all your AM stuff is done from home, theoretically, you can say your houses rent/mortgage is a business expense and write that off your tax too
But then your going to have to crush your fucking brain to figure out what % of your home you utilize for business purposes... etc etc
I know your in AU, and I dont know much about taxes over there.
The way I look at it... there is no "Theoretically" in the US Dept. Of Revenue... its "This is how it is, Son"
I know your in AU, and I dont know much about taxes over there.
The way I look at it... there is no "Theoretically" in the US Dept. Of Revenue... its "This is how it is, Son"
TIP: If you're running legit, and all your AM stuff is done from home, theoretically, you can say your houses rent/mortgage is a business expense and write that off your tax too
Check with your accountant if you don't want to end up in federal pound-you-in-the-ass prison. You really only get to right off a portion if you also live there.
What you don't like sharing a little less than half your earnings with your silent partner so he can then hand that money to low class lazy people on welfare who only know how to get a raise in their income by popping out another baby?
HarveyJ
He is - THE CACTUS!
I always find it so funny that people have issues with paying taxes...
I mean, I know your taxes get wasted on stupid things like unwinnable wars, and black book projects for useless military hardware, but it does get used on stuff you use all the time, like roads and maintaining other essential infrastructure.
You wouldn't have the Internet if it weren't for taxes.
Bill: My place is 4 rooms (not counting bathroom & kitchen), ergo, 25%. My accountant seems to like that figure too. Makes our lives easier hehe
I mean, I know your taxes get wasted on stupid things like unwinnable wars, and black book projects for useless military hardware, but it does get used on stuff you use all the time, like roads and maintaining other essential infrastructure.
You wouldn't have the Internet if it weren't for taxes.
Bill: My place is 4 rooms (not counting bathroom & kitchen), ergo, 25%. My accountant seems to like that figure too. Makes our lives easier hehe
Relax. It is very unlikely that you will end up in prison unless you hide lots and lots of income and lie about it. And I am not a CPA (Required Disclaimer), but this is my understanding...
To claim a home office, you do need a room that you use for business (so that cannot be your bedroom or living room which you use to sleep/watch TV in, etc.), but could be a spare bedrooms, study, etc.
You take the square feet of that room as a percentage of the square feet of your home. So if you room is 100 square feet, and your home is 2000 square feet, you use 5 percent. Then you can add up your utilities, repairs, mortgage/rent, etc., and claim 5 percent of that as the home office deduction.
So no, you cannot take off all of your home expenses. But you if you spend $2k a month for rent/mortgage + utilities that would be $24k times .05 = $1200 - maybe enough to knock you down a tax bracket... This is legitimate. I would assume the IRS would like it since you would certainly have much higher office expenses AND deductions if you rented an office elsewhere.
I have read that home offices may raise a red flag, but that doesn't mean you will be audited. And if you are audited, and you simply claimed the deduction you were entitled too, then you should not have any problesm.
The problem isn't so much paying the taxes but it's how recklessly that money is used by our government, but that's a debate for another time and place.
Im in Australia too.. how come we have to pay fucking tolls to use the roads our taxes should be paying for? e.g citylink in melbourne
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