Help Me:Tax for US Online Entrepreneurs (NOT Ebay)

[nikolaaa]

Hi All,

Can somebody help me with this Tax questions.

All tips what I found on the internet are more
applicable for e-bay business then for others.

I didn’t find answers for next questions:

1) Haw to show to IRS that your expenses are ordinary
and necessary (Except advertising on some well known
sites, paying for domain name or hosting )
You do not have supplies, mileage , inventory etc,
but you have to pay so many people somewhere in world
for doing something for you (for small or big amount
of $-s), without contract, or receipt. Can you tell
that it is CONTRACT LABOR? How you can name it??

You have to buy so many small software that most of
them on the end will not work for you and you will
throw them (will not have a proof that you have it)
only that you have is PayPal record that you paid to
somebody email.
You have to buy so many e-books, reports to learn this
business, can you tell it is Continuing education?
Again you will have usually only PayPal record: e-mail
to e-mali.

2) How to do bookkeeping? What record to collect ? (in
most cases except paypal record it is only e-mail
correspondence. Do you need to define what expenses
are for what your final earning or what your object of
business. It is almost impossible because of so many
things that you are doing and that this tings are
connected.
For example: you pay for Adwords for a site
on which you are selling your book but after few
months you are going to sell the whole site - expenses
are for bought the site and the book. If so you will
spend more time to keeping information than to working
on that what have to make you profit.

3) In shedule C what to put on line A? (You are
working in at least 3 NAICS Definitions of industry)
It will be again impossible to file 3 C shedules.


Thanks!
Nikola

[mybuks]

Hi Nikola, go to www dot justanswer dot com. Be specific with your question and you should get a good answer.

Hope that helps!