Entrecard and Taxes?

entrecard image

I’ve just recently become involved with Entrecard. Entrecard is a networking site for bloggers that involves “dropping” your card on websites and having cards dropped on yours. Sort of like the calling cards of old. I have found Entrecard to be a great marketing tool and it has already brought tons of traffic to my site.

Thanks to Entrecard I have also found plenty of interesting sites that I might never have found otherwise! I’ll be featuring some of them in another post, in my newly added Off-topic category!

Now on to taxes. At Entrecard you earn “credits” (some are now calling them entrecredits) by dropping your card on sites, and by selling ads on your site. You can then use those credits to buy ads on other sites. Simple enough so far. But a whole economy is springing up where people are buying and selling other goods and services using entrecredits. Today people are selling advertising, web consulting, and even cookie recipes using entrecredits. That brings up an interesting question, are these taxable events? Do the sellers need to report taxable income when all they have received are entrecredits? The answer is a surprising probably! Continue reading “Entrecard and Taxes?”

101 Tax Deductions for Your Online Business

picture of tax forms

Today I was reading I Help You Blog’s “101 Great Posting Ideas For Your Blog”.
It is a great post with lots of ideas and it inspired me to write 101 Tax Deductions for Your Online Business.

These deductions are all perfectly legal, however, the IRS is picky about how you take them. So make sure to do some research, or engage the services of a professional, before you take these deductions on your tax return.
Now, on to your 101 Tax Deductions!

Online Deductions

01. Web Hosting
02. Internet Connection
03. PayPal Charges
04. AdWords Ads
05. Web Designer Fees
06. E-Books Purchased for Business Use (Not for Sale, those would be inventory and that’s another post!)
07. Affiliate Fees
Continue reading “101 Tax Deductions for Your Online Business”

Seven Ways to Get a Jump Start on Your Taxes

Earlier is better when it comes to working on your taxes. Taxpayers are encouraged to get a head start on tax preparation, especially since early filers avoid the last minute rush and get their refunds sooner.

Here are seven easy ways to get a good jump on your taxes long before the April deadline is here:

1. Gather your records in advance. Make sure you have all the records you need, including W-2s and 1099s. Don’t forget to save a copy for your files.

Continue reading “Seven Ways to Get a Jump Start on Your Taxes”

Tips for Choosing a Tax Preparer

If you pay someone to prepare your tax return, choose that preparer wisely. Taxpayers are legally responsible for what’s on their own tax returns even if prepared by someone else. So, it is important to choose carefully when hiring an individual or firm to prepare personal returns. Most return preparers are professional, honest and provide excellent service to their clients. Here are a few points to keep in mind when someone else prepares your return:

  • A Paid Preparer is required by law to sign the return and fill in the preparer areas of the form. The preparer should also include their appropriate identifying number on the return. Although the Preparer signs the return, you are responsible for the accuracy of every item on your return. In addition, the preparer must give you a copy of the return. Continue reading “Tips for Choosing a Tax Preparer”

2008 Standard Mileage Rates

Beginning Jan. 1, 2008, the standard mileage rates for the use of a car (including vans, pickups or panel trucks) will be:

  • 50.5 cents per mile for business miles driven;
  • 19 cents per mile driven for medical or moving purposes; and
  • 14 cents per mile driven in service of charitable organizations.

The new rate for business miles compares to a rate of 48.5 cents per mile for 2007. The new rate for medical and moving purposes compares to 20 cents in 2007. The rate for miles driven in service of charitable organizations has remained the same.

The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile; the standard rate for medical and moving purposes is based on the variable costs as determined by the same study. Runzheimer International, an independent contractor, conducted the study for the IRS.

The mileage rate for charitable miles is set by law.

A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS), after claiming a Section 179 deduction for that vehicle, for any vehicle used for hire or for more than four vehicles used simultaneously.

Revenue Procedure 2007-70 contains additional information on these standard mileage rates.

What the IRS Wants You to Know About Your E-bay Income

Many people don’t realize the income they earn from auctions and consignment sales may be taxable.
What’s Taxable
All income from auctions, traditional or online, and consignment sales is generally taxable unless certain exceptions are met. This income is usually considered either “business” or “ordinary” income. Continue reading “What the IRS Wants You to Know About Your E-bay Income”

Identity Theft and Your Tax Records

How can someone steal your identity? Identity theft occurs when someone uses your personal information such as your name, Social Security number, or other identifying information, without your permission, to commit fraud or other crimes. Continue reading “Identity Theft and Your Tax Records”