Thread: DBAs & tax write-offs

I made enough in 2007 from my online earnings that I am going to claim them on my '07 taxes. I'm wondering if I go through the trouble to set up a DBA would that allow me to write off my computer and my internet costs? Even if it's too late to do it for '07, I'd love to get it set up for my '08 taxes.....

And can anyone suggest a good name for my DBA?

What all type of stuff do you do to make the money?

Originally Posted by Stax

What all type of stuff do you do to make the money?

Selling link space in my sigs, selling avatar, location, and recent blog feeds, paid forum posting, and whatever else I can get someone to pay me to do online.... (No, Quiki, not that...) :swink: :stongue:

alrighty...well you sell yourself online for money...hmm...i could think of a few DBAs for that line of work...but you wouldn't like them lol

Online Adventures?...

if worst comes to worst you can always just DBA your name

The way it works here is pretty simple.

If I earn income online and I am not an employee of some business, I can claim 100% of every expense related to the earning of that income. That goes for computers, ISP charges, phone bills, even a percentage of my mortgage interest if I'm working in my home. I don't need to register a business, either. I can just do business under my real name.
It may be the same or similar for you so check into it first. You may not even need to register a business. Why go through the hassle if you don't have to and if it's not to your advantage to do so?

with what zap said as well...though i do believe a DBA is required for business expenses in the states...i don't think what you are claiming would have to be business related...

all of what you mentioned could be considered selling personal property (other than the paid posting...that may be a service)...though you could probably just ignore this statement unless you wanna hire a CPA to figure it out for you...lol...just me thinking out loud

Originally Posted by Stax

with what zap said as well...though i do believe a DBA is required for business expenses in the states...i don't think what you are claiming would have to be business related...

Actually, it's not required to claim business expenses. I have a DBA now, but most of the money I make online is personal. My accountant usually handles everything, and I always include cell phone, hosting, registrars, and Paypal income reports.

I have my DBA solely for local business. It allows me to have a bank account under the business name so clients can write checks to the business as opposed to me directly.

Also, if you work from home, make sure write-off the space you work in. You should also be able to claim any expenses used to operate your business, such as utilities and physical space. I use an accountant to make sure I don't miss anything.

nice to know about that DBA not being required (though it doesn't help me...i have an inc)...not sure where i read one was required though.

I gotta start really researching this stuff...as next year i'm actually (hopefully) going to need to worry about my buisiness stuff

Very tricky as you are using the items for PERSONAL as well, plus when you commit to writing something off as business you must also included that when you for instance sell your computer as profit back into your business.

I'm sure it could be done, is it worthwhile? More than likely not, especially if you get audited.

Originally Posted by Stax

with what zap said as well...though i do believe a DBA is required for business expenses in the states...i don't think what you are claiming would have to be business related...

all of what you mentioned could be considered selling personal property (other than the paid posting...that may be a service)...though you could probably just ignore this statement unless you wanna hire a CPA to figure it out for you...lol...just me thinking out loud

We were planning on having a CPA do our taxes this year anyway. We've already met with him once, but that was before I thought of doing any of this. I will be talking to him, but I wanted to figure a few things out first before I talked to him, so as not to sound like a complete idiot.

Originally Posted by Red Hot Mama

We were planning on having a CPA do our taxes this year anyway. We've already met with him once, but that was before I thought of doing any of this. I will be talking to him, but I wanted to figure a few things out first before I talked to him, so as not to sound like a complete idiot.

If you do it correctly you could write off much more than just the computer and net access. Do you not use the computer for any of your other business ventures?

Originally Posted by Red Hot Mama

We were planning on having a CPA do our taxes this year anyway. We've already met with him once, but that was before I thought of doing any of this. I will be talking to him, but I wanted to figure a few things out first before I talked to him, so as not to sound like a complete idiot.

i gotta get me a CPA one of these years...would come in handy...might do it next year, as it'll get too complicated for me if my new years resolutions come true

i'm always afraid of the cost though...yours expensive?

I don't think they're expensive ... not for what they do. The most we've paid ours is $300 a couple of years ago. We ended up getting a $4700 tax return that year, so the cost we just paid him from that.

$300?...that's not expensive at all really, i'll have to check around my area next year...i'm just always of the mindset to find a good one it'll be a lot more than that.

Originally Posted by Stax

$300?...that's not expensive at all really, i'll have to check around my area next year...i'm just always of the mindset to find a good one it'll be a lot more than that.

You'll find that a good accountant will more than save you enough to pay their fee.

For me, it wasn't a question of whether or not I could do them myself. I probably could.
But would I want to do my own taxes, not pay an accountant and get back $1000?
Or should I get an accountant, pay them $500 and get back $4000?

So far, a DBA is not required in the US.

I have used turbo tax for years and year, and before turbo bought them out, parsons.

Get the professional version, it covers everything.

Until I retired, I did scads of tax work for individuals, farmers and ranchers and businesses.

Originally Posted by GRIM

If you do it correctly you could write off much more than just the computer and net access. Do you not use the computer for any of your other business ventures?

Not anymore. We got out of all of those business ventures. Otherwise we would have a nice corporation for writing things off...

Originally Posted by Stax

i gotta get me a CPA one of these years...would come in handy...might do it next year, as it'll get too complicated for me if my new years resolutions come true

i'm always afraid of the cost though...yours expensive?

When we met with him, it was with the idea of forming a corporation for our business. I think we paid him $360 for that consultation. We ended up resigning from the business instead.

Originally Posted by Zap

You'll find that a good accountant will more than save you enough to pay their fee.

For me, it wasn't a question of whether or not I could do them myself. I probably could.
But would I want to do my own taxes, not pay an accountant and get back $1000?
Or should I get an accountant, pay them $500 and get back $4000?

Exactly! And ours is more than a CPA. I forget his exact title, but he is also an IRS auditor. So he knows exactly what they are looking for.

Originally Posted by Zap

You'll find that a good accountant will more than save you enough to pay their fee.

For me, it wasn't a question of whether or not I could do them myself. I probably could.
But would I want to do my own taxes, not pay an accountant and get back $1000?
Or should I get an accountant, pay them $500 and get back $4000?

yeah, i haven't had a problem with that...being in the military i get the major companies for free every year (hrblock, turbotax)...so getting the full amount i've been owed hasn't been an issue...

it's just with adding my business into everything next year i'm not sure if i'll still trust the online ones

Originally Posted by Red Hot Mama

And can anyone suggest a good name for my DBA?

Okay. Now lets focus on a name for my DBA. I'll use my first name (Stephanie) but not my last. The part of the point of having a DBA for me is so I can conduct my business under the DBA instead of using my full name for everything.

Stealing from Digital Point Solutions, I thought of Stephanie's Digital Solutions. Not sure about it though. Then I thought of just using the acronym SDS. Then I thought that SDS could also stand for Stephanie's Design Services, which might be useful if I ever get around to learning Photoshop and creating logos-n-stuff...

What do you think??

What is a DBA?

Is it 'Doing Business As'? (a quick G search)

If it is why not tell your accountant you were doing business as "Red Hot Mama". They might give you a discount.

ha...good one Halobitt

Mama's Digital Solutions
Mama's Digital Playhouse (sounds pornish though)
Stephanie's Solutions

Originally Posted by Stax

ha...good one Halobitt
Stephanie's Solutions

yes I support the SS. Stephanie's Services? no need to describe what kind they are.

Originally Posted by WikicyloN

yes I support the SS. Stephanie's Services? no need to describe what kind they are.

any slogans in mind? :evilgrin:

Let Stephanie's Service service you.

Originally Posted by Stax

any slogans in mind? :evilgrin:

Originally Posted by WikicyloN

Let Stephanie's Service service you.

"The Pleasure Is All Yours"

Oh wait, I am supposed to protest and say that you guys are not being helpful...

well ya, that's what you were supposed to do...but it's ok...we all knew you wouldn't

I finally got my DBA registered today...

Now I can buy my laptop as a business expense and when I do my taxes next year, I can write off my internet fees and probably take a deduction for using part of my home as an office! :love:

Originally Posted by Red Hot Mama

I finally got my DBA registered today...

Now I can buy my laptop as a business expense and when I do my taxes next year, I can write off my internet fees and probably take a deduction for using part of my home as an office! :love:

You do have to try to make a profit though

Originally Posted by GRIM

You do have to try to make a profit though

Shouldn't be a problem. I'm more than halfway there already, and the year is only 1/4 of the way over... And I think a business that can show a loss on paper might be even better for tax purposes.

Originally Posted by Red Hot Mama

Shouldn't be a problem. I'm more than halfway there already, and the year is only 1/4 of the way over... And I think a business that can show a loss on paper might be even better for tax purposes.

I mean profit with all your 'deductions' paper loss is only good for x amount of years, plus can draw an audit

A business can not run forever on a paper loss..

Originally Posted by GRIM

I mean profit with all your 'deductions' paper loss is only good for x amount of years, plus can draw an audit

A business can not run forever on a paper loss..

True. But I am not going to buy a new computer every year. And I think that will only be my big expense, other than my internet fees...