Tax Help...

[karter9977]

I am 17 so I really dont have any expierence with filing taxes. Ive been in the domain business for a few years now but havent really made much so I never paid taxes. But I went full throttle in domains last month and I am definetly going to need to pay taxes.

I got the domain tax guide and its helped a lot but I am still confused on a few things.

I am going to file for a dba as a sole proprietor. Will I only need to file a 1040 and a Schedule C?

Also the tax guide says to pay quaterly est tax, can I just pay at the end of the year?

One last question. Lets say I sold a domain name for $1,000. But paypal took $25 and escrow took $25. Do I write down I sold the name for $1,000 and then I put the fees under expenses or do I write I sold it for $950?


I really appreciate any advice and I thank you all in advance.


Thanks

Steve

 

[JohnnJohnn is verified member.]

Consult with CPA to see what is your best filing status.
Make sure that you have records of everything.
If you sold a name for $1,000 and escrow fee is $100 then your net sale is $900 unless you want to detail $100 as your selling expenses.
Expenses that you may claim:
- Computer, membership fees, etc...

Again consult with a CPA - don't want to mess with IRS.

Good luck.

John

 

[fatter]

I use a 1040 schedule c and dont pay quarterly as long as your tax liability is small, I forgot the figure there is no penalty for not paying quarterly, a little late for that now anyway, You can download the schedule C instruction book with instructions. at the IRS website. dont forget to deduct reg fees from any profit but as everyone else said a cpa is best advice

 

[Theo]

My best advice: ignore all advice here. Well, except for mine of course
But seriously, talk to a CPA as John said (certified public accountant).
Since you are under 18 there might be other provisions that apply.
Oh and the fee of the CPA is an expense.