Oh shit uncle sam is going to fuck me hard!

[shane94]

OK this is the first year that I am running a adult site. I have made about a good bit of cash and live in the US. I have a paysite and a few link sites. What can be deducted from my taxes?? I NEED HELP PLEASE!!!!!!!!!

Shane

[playa]

all your isp fees and computer hardware or whatever you paid for into the business is a write off........

[basschick]

you can deduct your content, plus a portion of your rent - the percentage of your dwelling you really use for work. we deduct 1/6th of ours. also any fees for plugins.

any magazines, books or similar that you used to learn about the adult business or web work , you can also deduct.

basically any legitimate business expense counts... if you need content, buy it before the end of the year!

[DemonWolfe]

Are all these things deductable if you are merely working under your own name, or only if you have a business license or have incorped?

Also, if you simply run free sites
(as I do at the moment... although I intend to open a paysite in the very near future)
does this have any effect on what is deductable?

What do you guys tell your taxman anyway? (CPA or bookeeper)

[Jonathan Craig]

Ahh thank god for offshore accounts. Wouldn't want to give a nasty amount of the profits to the taxman http://adultwebmasterinfo.com/ubb/biggrin.gif

[SID MAN]

Hey Jonathan

Could you pass on a URL, on the comnpany you use for your account ?

And if you have a few good advice too, that would help....

What are the qualifications to get an offshore account ?

[Jonathan Craig]

I'm afraid there's no URL since we deal with them in person. We have our own company registered "there", along with multiple bank accounts and credit cards.

We'll be putting up a offshore service targeted to adult webmasters soon, with the best advice and manuals for "getting more money" (i.e avoiding tax haha)

In Sweden, you pay the highest taxes in the world. Wouldn't want that to happen http://adultwebmasterinfo.com/ubb/biggrin.gif

[noodle]

That's the problem with you Americans. Your damn congress is just WAY too up to date with technology, forcing you poor barstards to give your SSN to sponsors.

Take us Aussies. Sure we can smash you Yanks like guitars in the olympic pool, but our parliament is still grappling with the concept of the wheel, let alone how to tax me for all the bucks I make on the Wonderfully Wealthy Web.

One thing we can be proud of, however, is being the first country to legalise euthenasia. Who needs the elderly..

Aussie Aussie Aussie... Oi. Oi. Oi.....

[basschick]

you can do business as an individual working under your own name.

our tax man is in chino hills, california.

noodle, relax. smoke a doob!

[redbomb]

This is something I've been wondering about for some time...

I'm in Canada, and just working under my name right now (no registered business), so what happends come tax time?

For those of you going off shore... be very careful, you can easily get FUCKED when something happends to your bank (and it happends a lot, theres only a few places left).

[JewDoggyDogg]

Can you make a deduction for a CJ script you buy?

[Mr Exotic]

I deduct scripts that I buy, hosting expenses, and software that I buy.

[jello]

good place to get one of them offshore accounts


[url=offshore.wildrhino.com/.sbean?bean=1-0-3-4492-9-1-4]Offshore Acounts[url]

[jello]

try it again

offshore.wildrhino.com/.sbean?bean=1-0-3-4492-9-1-4 (http://offshore.wildrhino.com/.sbean?bean=1-0-3-4492-9-1-4)

[jello]

try it again

offshore.wildrhino.com/.sbean?bean=1-0-3-4492-9-1-4 (http://offshore.wildrhino.com/.sbean?bean=1-0-3-4492-9-1-4)

[Labret]

Moving offshore is good, but you can get your ass in in a sling if you move funds into an offshore account and plan on bringing it back into the country with the thought that your going to somehow avoid the IRS and taxes. 90% of people who send there money offshore use a Visa to spend their money and think that nobody will ever be the wiser.

The IRS just made deals with Visa for them to supply them with the transaction details for millions of cards issued by offshore banks. Unless you plan on backpacking your cash back into the country, think twice about using the Visa, or at the very least make sure the bank you go with is not in one of the jurisdictions that the IRS and Visa have targeted. Some countries told them to piss off... Belize for instance.

And for those curious, ANTHING you use for your business you can write off. Scripts, cable modems, books, postage... if it has anything to do with your business, keep a receipt and write it off.

[DaMan]

What about Computers, Big Screen Tvs, DVD Players, Furniture, Cars ?

any of these go into expences ?

[Labret]

Computer? Do you use it for work? I sure as hell do. And I buy the best one I can every year around Christmas time to write it off. If your DVD player, furniture, and vehicles are used for business... then yes. If you claim them, and you get hit with an audit, you better hope to god you can prove it to the agent performing the audit that they were indeed used for business. Remember people, the IRS basically take your word for it when you tell them what your spending on your business. They are not stupid however so dont think you can just make up numbers, you may get away with it, but holy shit you better hope like hell you never get audited if you do.

Originally posted by DaMan:
What about Computers, Big Screen Tvs, DVD Players, Furniture, Cars ?

any of these go into expences ?

[shane94]

See here is one of my problems....A lot of the stuff I have for my site say hosting is charged to a credit card every month. I do not get a receipt. Also I purchase a lot of video feeds for my pay site and do not have receipts for them. Will a charge on the credit card statement be enough or a cancelled check?? Or do I need to contact my host and try to get a receipt..............

Thank you all very much for the great help! And I agree...stay away from off shore accounts!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Regards
Shane

[gse]

Hardware, computers, etc they consider a property and you can't write it off. You have to depreciate them over 5 years.
Same thing about furniture and shit, but I don't know depreciation time for them.
Software, scripts, they consider intelectual property which also by their law should be depreciated over some period of time.
God bless America and their IRS

[shane94]

I have done more research and a computer if it is used for the business can be written off (: And yes God bless America....we may have taxes but we still have a lot of things other countries don't....and no I am not trying to start a pissing match (: Anyone know about the receipt thing (+; <--my smile yeah it sucks!

[playa]

use HR Block.....they have an option to pay $25 insurance for just incase you get audited they'll pay up to 5,000.....

all i can say is they turned me owing 2k to the government oweing me 1k...HEHE..

it was all legit too....you never know what can be written off.....it was incredible...
those trips to them conventions can be written off also...

..
check with your CREDIT card customer service they probably can send you all your statements or probably if their big have web access..

bout offshore accounts...that can just trigger a red flag.....if you really worry about TAXES.....then choose sponsers that are non US...like Gamma is pretty good..

demonwolf,
if you got a 1099 and then you can say you are self-employed..you don't need a business name or be incorportate...but it can help if you got to be INC. for tax purposes....

[DemonWolfe]

Right on, lotsa good info on this thread... http://adultwebmasterinfo.com/ubb/smile.gif


Well, this has been my only source of income for the entire year, so I know I am going to owe some serious cash. http://adultwebmasterinfo.com/ubb/frown.gif

I may just find an H&R Block... http://adultwebmasterinfo.com/ubb/wink.gif

In Jan, I plan to Inc, so I can open the paysite I have been building...

Anyone ever tried reading up on incorping? My God its written in a foreign language... you know, one that only attornys speak...

[shane94]

I am already running a pay site with no INC name (: I plan on getting one at the begining of the year (:

[Labret]

According to my CPA, credit card receipts are good enough. I know all to well that 90% of this shit I buy online for my site (content/bandwidth/scripts) never comes with a receipt. The IRS are not complete bastards.

And the only way an offshore account will trigger a red flag is if you "tell" them you have an offshore account. Why in gods name would you tell them? Tell nobody that you have one. But do not try and bring the money back in the country, thats where they will get you. You store it offshore, you spend it offshore.

As for incorporating, its not really all that hard, and the benfits are numerous. Think about moving to a state that has no tax... like Alaska or Washington State, can save you a bundle.

Get used to it, tax time makes me cry. Sending off a 50 thousand dollar check every year depresses me for a few months. And the more you make, the more you pay. The only good thing about Bush is that he says he is gonna fix that. If you make enough, you'll be paying quarterly, that sucks!

Get a CPA, they are worth there weight in gold.

[basschick]

we always use our credit card and deduct it. just make photo copies of the statements and circle the deducted items - even make a little note of what it was.

h&r block freaked at all of our out-of-the-country sponsors and sent us to their "special" more expensive corporate building. they wanted A LOT more money.

re wildrhino, according to an article in an internet magazine, they were busted for their offshore account. if you go that way, do it through a lawyer - if you want to become a corporation in nevada instead, do it here: http://www.legallady.com

[TheAce]

I'm scared shitless of the taxman... DAMN is he going to smile very big when he see's what I've made!

Let me ask you a good question... What is a good precent to take out of a check??

[basschick]

relax... they'll take payments, and you can get an extension if you need one.

the percentage is hard to say, since it's really all about what you spent on business - dialup, hosting, content, classes, hardware, scripts - all of that you can deduct, plus part of your rent, mileage on your car to go to your office or post office box...

[basschick]

btw, the first year we were doing this, we made $42,000. we ended up owing the irs $1250 and state $250.

no deductions for kids, aged parents, etc, btw.

not too bad...

[shane94]

Well next year I am not going to be a dumb ass and go wild! Shit I got 50k in 2 cars setting in my drive way (: Oh well! If you are new to all these web stuff I would get a daily planner and log in all checks and payments that made. I called my credit card company and they sent me a copy of my whole years worth of charges. Anyway!

Shane

[gse]

Labret,
what country is the safest for offshore accounts at this time?

[Jonathan Craig]

gse, we have all of our accounts and offshore corporations on the island of Aruba.
Very safe since the company we're dealing with is owned by the Government http://adultwebmasterinfo.com/ubb/biggrin.gif

Plus, the bank we're dealing with is one of the largest in the world. So it's not a *huge* risk.

Like that other guy said, it's only risky if you tell anyone or take them into the country.

We, however, can take our money into Sweden legally and get away with only a 1.3% tax. And yes, we use offshore credit cards too.

Works fine http://adultwebmasterinfo.com/ubb/biggrin.gif

[gse]

island of Aruba? Jes., never even heard of them. lol
Hey Jonathan, can you forward me some more info about to gse@re-seller.com
Thanks

[Jonathan Craig]

If you're looking for info on how to set it up yourself, I'm afraid we can't provide any that is "easy to use" and would rather suggest to wait until our new offshore service beings, specifically directed to Adult Webmasters!

The site will contain not only information about that, but also general tips regarding taxes and a useful ordinary webmaster resource page (links, articles, etc.)

We haven't decided about it yet, but there *might* be a fee for gaining access.

Cheers and Merry Christmas!

[gse]

hit me email anyways. maybe we could come up with acceptable solution to both parties --)))

[Labret]

http://kpmgbelize.com/

This the Belize Office of KPMG.

You can literally have a Belize IBC and bank acount in Less than a week. Very professional.

And Belize is very safe, amongst the safest. Dont take my word for it, do some research.

They (Belize) recently won a court decision against a LARGE American creditor refusing to give out one of their IBC's financial information. They have no agreements with the US government, or anyone for that matter. Belize has their shit going on.

[gse]

Labret, thanks.

[magnatique]

dunno how it is in the US,...

but say you believe you have taken too much cash out this year, and you believe you don't have enough to pay for that salary..

here in canada we can do two things..

we have 2 years to declare any income from the company... I mean, declare where it went..
so, you could split your salary over two years..
I.E I took out 50K, I can declare 30 this year, 20 next year.

also, another cool thing is dividend...

here, taxes can go well over 30% after 30K...

if you take ALL dividend, it'd cost you ONLY
1.5K$ for 20k, and 3K$ for 30K in dividend..

after 30k, it starts climbing back fast towards 38% tax... (quebec here, that's my numbers)

but that's only if you take ALL dividends...

if you take both salary and dividends, then it's another story...

[exitmoney]

guys just pay your taxes and be happy we have all the services our countries offer

Octav M

[Labret]

Hahahaha... simply put.

[shane94]

(: hehe

[gse]

Labret,
I could be wrong, but after some digging looks like Belize ain't that much of the tax heaven. T. and C. seems better in this regard

[Blkwolf]

Hi all

Well I live in Canada and pretty much write everything off for all my web sites. I suggest getting incorporated as its cheap and for 250 dollars you can register the trade name and incoporate through a local registry. Having this allows you alot more write offs than just a genaral popriatorship or business licence.Write evrything off computers, desks, chairs ,content,webcosts etc. Anything with realationship to the business. I don't segguest writing off a portion of your house in Canada as when you go to sell your home you have to pay capitol gains tax on the room you write off.This ends up costing you more in the long run. As for car and fuel costs ya write them off. Your CPA will ask you to keep a log of all the travel you do. Log distances etc. Gas , car , insurance, licence costs all these are a write off. Stay away from offshore for sure just not worth it unless you have a few million then its different. Another good thing to do is use some outside investments to same your ass at tax time. Works the same in Canada as the US. Get a percentage of cash into tax shelters . This with the write offs you have you can walk away without owing a dime. http://adultwebmasterinfo.com/ubb/smile.gif

Hope this helps
Be Cool
Blkwolf

[Jonathan Craig]

Blkwolf, staying away from offshore is unwise. Or at least, I suggest that people look into it more.

Belize is not a tax "Paradise" at all and many people, thinking they're experts, suggest it as the "ultimate" tax "paradise". I'd like to advise you to NOT use any Belize based companies. It's, for one, too close to the U.S and gives too much notice to U.S departments of law.

If you'd like to look things up on your own, look up Aruba. It's an island in Asia and it's not widely known for being a tax paradise.. more like a tourist trap actually, with HUGE casinos! (hehe trust me, I know about the casinos http://adultwebmasterinfo.com/ubb/biggrin.gif )

In our case, we do have a large number of dollars flowing in, and there is a way, a little hole, in Swedish law to move the money back into Sweden without paying more than 0.1% tax or less. This works in the U.S too but requires a little more work and maybe a 7% tax overall. So if you wish to spare the hard work and the extra expenses for offshore, go ahead and pay the 40% tax or whatever you have and be happy.

Merry Xmas!

-John

[Labret2]

Belize is to close to the US? ahahaah, crap, utter crap. Ask ANY accountant, ANY offshore account or corporation will set off the IRS red flag. Being close to the US has several advantages.

I am not sayng that Belize is the only place in the world to set up an IBC... but it works for me and thousands of other corporations. The banks are magnificent. There is no tax, and they have NO agreements with the United States or Visa.

<insert cut and paste>
Secure proof enough to withstand even the best efforts of the US SEC. Belize was the first country to turn away the SEC in a landmark Supreme Court ruling. In a landmark decision asserting Belize's sovereignty as an offshore financial jurisdiction, the Supreme Court of Belize upheld the country's confidentiality laws by revoking a previous court order set in motion by the Securities and Exchange Commission of the United States requesting that confidential documents, belonging to Swiss Trade and Commerce Trust, Ltd., be handed over to them.

In the case, Securities and Exchange Commission (SEC) vs. Swiss Trade and Commerce Trust, Ltd., Banner Fund International, Lloyd Winburn et al, Supreme Court Justice Troadio Gonzalez ruled that documents held by the Belize court belonging to Swiss Trade and sought by the SEC, be immediately returned to Swiss Trade and Commerce Trust, Ltd.

Lawyers for Swiss Trade said that what this means for Belize is that this aspect of confidentiality, which is an important feature of the offshore industry, has been upheld. The decision was a major shot in the arm for Belize's offshore financial services sector. A country's ability to assert its sovereignty without the interference of outside forces is a major deciding factor in choosing a place to invest and protect personal property.

When asked for his comment related to the decision, Lloyd Winburn, Director of Swiss Trade & Commerce Trust, Ltd., in Belize, stated, "The Court's decision confirms our reasons for establishing our company in Belize originally. The law related to confidentiality has been tested and found to be not lacking clarity and strength.

The case arose after the SEC investigators attempted to get information on individuals holding assets with Swiss Trade. The Supreme Court decision was upheld by the Court of Appeals in 1996.

[gse]

check the Belize own personal income taxes.
if you make under $10k US you owe them no tax, but anything above it taxed about the same as US, (maybe a bit less)
With high income you end up paying 45% to Belize

[Jonathan Craig]

Well, with those amounts, there isn't that much of a problem getting caught or anything by the IRS. PNI for example deals with much higher, monthly, amounts and must have a secured location where tax is virtually nonexistant for non-citizens or corporations run by foreign individuals. Therefore, Aruba is a much better place for those with higher income. And there are no open discussions about it in papers and magazines.

Another good one is the Isle of Man, which is definitely one of those "paradises", both when it comes to tax and otherwise :-) To move money into Sweden with 0.1% or less in tax, we use a company called Royal Skandia, situated on the Isle of Man and a division of a multibillion corp called Skandia (they make buses/trucks, sell insurances, etc. Lots of stuff).

I'd really suggest checking them out if we're talking $50,000+ (at least) of income. Or, well, you can still get services from them with less income but to start an account that does the things I've talked about, you need $50,000 in the hand. As a service fee, they take a very minor percentage of the money you move in and out.

Maybe you should check with a U.S lawyer regarding laws about funds and insurances/bonds. There are ways of moving money back and forth with small percentages to pay (less than 7% in the U.S, I'd wager.)

Ah well.. back to my eggnog.. cheerios!

[Jonathan Craig]

Oh I forgot.. URL to Royal Skandia is http://www.royalskandia.co.uk ..

You could try .com too if the above one doesn't work.

[Labret2]

gse,

Thats persoal tax for citizens of Belize, not for your IBC. IBC's are tax exepmt.

[Labret2]

A Belize IBC is exempt from...

the payment of all forms of local taxation;

the payment of stamp duties for transactions in respect of its shares, debt obligations or other securities;

the payment of stamp duties with respect to all instruments relating in any way to its assets or activities.

[Labret2]

I like your system.. but I believe over here we call it "money laundering". http://adultwebmasterinfo.com/ubb/smile.gif eheheh

Originally posted by Jonathan Craig:
Well, with those amounts, there isn't that much of a problem getting caught or anything by the IRS. PNI for example deals with much higher, monthly, amounts and must have a secured location where tax is virtually nonexistant for non-citizens or corporations run by foreign individuals. Therefore, Aruba is a much better place for those with higher income. And there are no open discussions about it in papers and magazines.

Another good one is the Isle of Man, which is definitely one of those "paradises", both when it comes to tax and otherwise :-) To move money into Sweden with 0.1% or less in tax, we use a company called Royal Skandia, situated on the Isle of Man and a division of a multibillion corp called Skandia (they make buses/trucks, sell insurances, etc. Lots of stuff).

I'd really suggest checking them out if we're talking $50,000+ (at least) of income. Or, well, you can still get services from them with less income but to start an account that does the things I've talked about, you need $50,000 in the hand. As a service fee, they take a very minor percentage of the money you move in and out.

Maybe you should check with a U.S lawyer regarding laws about funds and insurances/bonds. There are ways of moving money back and forth with small percentages to pay (less than 7% in the U.S, I'd wager.)

Ah well.. back to my eggnog.. cheerios!

[gse]

Originally posted by Labret2:

gse,

Thats persoal tax for citizens of Belize, not for your IBC. IBC's are tax exepmt.

Yeah, but don't forget you must establish residence in Belize and live in US no longer than 120 days. Otherwise IRS will take your ass to jail if find out about your Belize ABC

[Labret2]

No, you dont. Who told you that?

[Labret2]

Your getting some serious misinformation, I think you need to stay away from offshore altogether.

Go visit http://www.ocra.com

Excellent resource.

[gse]

Belize IBC may be tax exempt cause you're a foreigner to Belize. If you live in US and make money in US, they want tax off you.
You can launder the money, but prey to God irs never find out connection between your IBC and you. Belize may be good about nondisclosure, but who says it can never change?

[Labret2]

No they dont. And wherever you read that, you were severly misinformed.

[gse]

not misinformed, just applying common sence.
You can do business in US as IBC corp based in Belize or whatever, and keep the money on offshore account. You don't tell no one about
your connection with ABC. The thing is you need to find a way to move the money back to US to spend them, unless you wanna spend them on real estate in Belize or something. You can do it by using ATM and visa, then again..
Can you be 100% sure it's untraceble? Also suppose you do that, buy some property in US or whatever and suppose some asshole reports you to IRS, you need to prove to them where you got the money to buy this shit. Right?
I think to be really safe from US fucked up system you need to make yourself ex-patriot, I know people do it legally.
But again, I'm just learning this stuff, so I could be wrong...

[TheAce]

offshore accounts can get your ass in trouble. Best bet is to find yourself a good CPA and let him work his magic.

[gse]

there is no much magic in CPA's work, they all have to stick to their fucked up laws. If you make above certain amount of $ for instance, and buy the hardware - Money paid for the hardware then may not be written off the first year, cause it's property and must be depreciated over 5 years. Very fucking funny.
You buy yourself some real estate for your office - fucking 30 years. If you build that office yourself, then you can write it off as materials and labor, otherwise stay in business for 30 years and watch for the buses when crossing the road. Hahaha