PayPal Tax Deductible? - geek/talk: Signature-free discourse for serious web publishers

subprofile · 11-29-2001, 05:11 PM

Hi everybody, I'm paying all my hosts via paypal currently (One I'm renting a rackshack and the other is just hosting it himself). I was wondering if and how I'd deduct these paypal charges from taxes. Would it be possible to use paypal receipts? If not, what do you suggest I do. If I wrote checks would I be able to deduct those? Thanks in advance for any help,
Toby
www.subprofile.com
www.imtools.com

Lil_Red · 11-29-2001, 06:53 PM

The best thing is to make an appointment with a tax accountant and ask them how to handle it. When it doubt, consult with an expert.

sdarken · 11-29-2001, 11:58 PM

I don't know which country you live in subprofile so you will need to check this with a tax expert in your country.

In general however, if you are treating your earnings as a business then you will be able to deduct your costs as expenses against these earnings. The main thing to do is to keep very good records of revenue and expenses. I just use an Excel spreadsheet and that seems to work fine for me.

When you use PayPal you probably get some sort of confirmation page each time you make a payment. You can print that out and file with your records. In addition, this payment will show up in your bank account statement or credit card statement so you will have that proof of payment also. Finally, you probably get some sort of email invoice every month from your hosting company so print that out and file that too.

If you keep all the paperwork I have mentioned (which is more than I do) you will have everything you need to support your expense claims.

By the way, if you pay any PayPal fees, these can probably be treated as expenses also.

11-29-2001, 05:11 PM	#1
subprofile Registered User Join Date: Sep 2001 Posts: 2	PayPal Tax Deductible? Hi everybody, I'm paying all my hosts via paypal currently (One I'm renting a rackshack and the other is just hosting it himself). I was wondering if and how I'd deduct these paypal charges from taxes. Would it be possible to use paypal receipts? If not, what do you suggest I do. If I wrote checks would I be able to deduct those? Thanks in advance for any help, Toby www.subprofile.com www.imtools.com

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11-29-2001, 06:53 PM	#2
Lil_Red Registered User Join Date: Dec 2000 Posts: 1,579	The best thing is to make an appointment with a tax accountant and ask them how to handle it. When it doubt, consult with an expert.

11-29-2001, 11:58 PM	#3
sdarken Registered User Join Date: Sep 1999 Location: San Francisco Posts: 1,396	I don't know which country you live in subprofile so you will need to check this with a tax expert in your country. In general however, if you are treating your earnings as a business then you will be able to deduct your costs as expenses against these earnings. The main thing to do is to keep very good records of revenue and expenses. I just use an Excel spreadsheet and that seems to work fine for me. When you use PayPal you probably get some sort of confirmation page each time you make a payment. You can print that out and file with your records. In addition, this payment will show up in your bank account statement or credit card statement so you will have that proof of payment also. Finally, you probably get some sort of email invoice every month from your hosting company so print that out and file that too. If you keep all the paperwork I have mentioned (which is more than I do) you will have everything you need to support your expense claims. By the way, if you pay any PayPal fees, these can probably be treated as expenses also.