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Subject Author Date
Bussiness Gain or Loss quickcur@yahoo.com 06-18-2006
Posted by quickcur@yahoo.com on June 18, 2006, 11:48 pm
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 I have a day job. I also have a website selling a software I
developed. I use a vendor to process credit card transaction
for me. The vendor send me 1099 form. I do not register a
company with the city. Can I claim bussiness gain or lose
for my software selling?

Thanks,

q

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Posted by Phil Marti on June 20, 2006, 1:53 am
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> I have a day job. I also have a website selling a software I
> developed. I use a vendor to process credit card transaction
> for me. The vendor send me 1099 form. I do not register a
> company with the city. Can I claim bussiness gain or lose
> for my software selling?

You show your income and expenses from this activity on
Schedule C of the 1040. You compute your self-employment
tax on the profit (we hope) on Schedule SE.

As with anyone starting a business, you would benefit by a
session with an accountant.

--
Phil Marti
Clarksburg, MD

<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Paul Thomas, CPA on June 20, 2006, 1:53 am
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> I have a day job. I also have a website selling a software I
> developed. I use a vendor to process credit card transaction
> for me. The vendor send me 1099 form. I do not register a
> company with the city. Can I claim bussiness gain or lose
> for my software selling?

You should be filing a Schedule C (and other related forms)
with your return to report that income and the related
business expenses.

One thing to keep in mind, if you have a legitimate
business, make sure you do what a legitimate business does,
and get a business license from your city. It's highly
likely that given your situation, a license ifn't required,
but check into it anyway.

You also should be charging sales tax to anyone in your
state that buys from you, and filing the forms regardless.

A visit to a local CPA or EA would be something to plan to
do in the next few weeks.

--
Paul Thomas, CPA
paulthomascpapc@bellsouth.net

<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Arthur Kamlet on June 20, 2006, 2:12 am
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> I have a day job. I also have a website selling a software I
> developed. I use a vendor to process credit card transaction
> for me. The vendor send me 1099 form. I do not register a
> company with the city. Can I claim bussiness gain or lose
> for my software selling?

You have a business which means you have to file schedule C
and perhaps schedule SE if you had more than $433 of net Sch
C profit.

Check locally to see if state or local taxes are due.

__
Art Kamlet ArtKamlet @ AOL.com Columbus OH K2PZH

<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by ed on June 20, 2006, 2:12 am
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quickcur@yahoo.com wrote:

> I have a day job. I also have a website selling a software I
> developed. I use a vendor to process credit card transaction
> for me. The vendor send me 1099 form. I do not register a
> company with the city. Can I claim bussiness gain or lose
> for my software selling?
>
> Thanks,

Your software business MUST be reported to the IRS by
completing a 1040 Schedule C and SE to attach to your 1040
tax return. It has nothing to do with registering with the
city, which probably isn't necessary unless you operate
under an "assumed name" (like Joe Blow d/b/a Your Software
Source).

On Schedule C you will start out with your gross sales and
then deduct expenses, including the Visa processing fees.

The result from Schedule C is either a profit or loss and
you owe no SE tax if it's a loss, but the loss is deductible
from your other income as a negative number on 1040 line 12.
If you made a profit follow the instructions on the forms.

ed

<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

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