Taxes and reporting freebie trading - FAQ - Page 2 - FreeLunchRoom - The #1 Freebie Trading Forum on the Internet!

wonderwomom · 01-03-2008, 02:44 PM

Ask and ye shall recieve. Thanks!!!

TraceMae · 01-03-2008, 03:27 PM

Thanks so much this is extremely helpful!!

LNAngel · 01-03-2008, 03:39 PM

Great posting, but a question: I'm still unsure why we can deduct what we pay to have people green for us, if we are receiving a service? Especially a service that allows us to get prizes/money. Please clarify!

And I'm not arguing, I'll take the deduction for sure!! Just need some clarity -my dad is also a CPA - MY CPA, and doesn't quite understand the concept of this freebie world, so I want to make sure I have all my info straight. You can give it to me in accountant speak if you want, and I'll pass it on! :)

Stinger31 · 01-03-2008, 04:10 PM

Great question--with refs, you're paying people for a service that generates income to you which you report as taxable income. The service is totally worthless to you if you aren't eventually able to cash out with the site, and those cash outs are reportable as income. That's why the matching deduction is allowed. Hope that helps.

Quote:

Originally Posted by lnangel

Great posting, but a question: I'm still unsure why we can deduct what we pay to have people green for us, if we are receiving a service? Especially a service that allows us to get prizes/money. Please clarify!

And I'm not arguing, I'll take the deduction for sure!! Just need some clarity -my dad is also a CPA - MY CPA, and doesn't quite understand the concept of this freebie world, so I want to make sure I have all my info straight. You can give it to me in accountant speak if you want, and I'll pass it on! :)

LNAngel · 01-03-2008, 04:13 PM

I guess I deserve a big "duh" for that one, huh? Thanks for clarifying!!

Lesley · 01-03-2008, 05:53 PM

Thank you for taking the time to share this great advise with everyone. I'll know what details to bring with me to my accountant!

Lesley

angelsmosaic · 01-03-2008, 10:45 PM

This is very informative. Thank you for posting it. Even though I don't have a need for it on this year's taxes, I plan to in 2008!

sullx · 01-04-2008, 06:56 AM

Question for you. As far as taxable inflows, do we only count the money received? Because say a freebie company pays out $40 I may only receive $38.54 after the $1.46 paypal service charge is taken out. Should I record both numbers?

Which amount will be taxed? Thanks.

tbirdjak · 01-04-2008, 07:12 AM

Great information and just what I was looking for, not that I need it for last year, but will definitely need it this year. Thanks!

dtaylor5 · 01-04-2008, 09:26 AM

I still don't understand why part of the costs at least of a computer used just for this would not be considered a deduction? In order to do freebies, you need a computer and an internet connection from home- It's not possible with any other- So, if a person purchased a computer for doing freebies, it seems a little strange to not be able to deduct at least some of the cost of buying it- Now, someone could reasonable argue that the computer was not used solely for freebies, but you could fairly easily say that it could be 25-50% of the time- and then there is the question of whether to declare as a hobby or business- is there any benefit of doing this one way or the other? there is a little time to get this together, but just wondering for now what I should be trying to do-thanks for the great post- i appreciate the time it took you to put it together. Earle

01-03-2008, 02:44 PM	#11
wonderwomom wonderwomom is enjoying FreeLunchRoom! User is Offline TR: 4 / 100% Status: Lunchables Join Date: Dec 2007 Location: GA Posts: 10	Ask and ye shall recieve. Thanks!!! __________________ I am new to trading, but loving every minute of it!!! Willing to take any help given. PM's always welcome! always paying on green.

01-03-2008, 03:27 PM	#12
TraceMae TraceMae is enjoying FreeLunchRoom! User is Offline TR: 129 / 100% Status: FLR Addict Join Date: Aug 2007 Location: ♥FLR Verified in Wisconsin♥ Posts: 1,610 Blog Entries: 1	Thanks so much this is extremely helpful!! __________________ ☼♥FLR VERIFIED!♥☼ You can make $100+ from me today! Bonus for completing multiple sites! Live Help! ☼♥►My Trade Thread!◄♥☼

01-03-2008, 03:39 PM	#13
LNAngel LNAngel is enjoying FreeLunchRoom! User is Offline TR: 152 / 100% Status: Golden Lunchbag Join Date: Nov 2007 Location: Florida Posts: 2,737	Great posting, but a question: I'm still unsure why we can deduct what we pay to have people green for us, if we are receiving a service? Especially a service that allows us to get prizes/money. Please clarify! And I'm not arguing, I'll take the deduction for sure!! Just need some clarity -my dad is also a CPA - MY CPA, and doesn't quite understand the concept of this freebie world, so I want to make sure I have all my info straight. You can give it to me in accountant speak if you want, and I'll pass it on! :) __________________ No longer actively trading!

01-03-2008, 04:13 PM	#15
LNAngel LNAngel is enjoying FreeLunchRoom! User is Offline TR: 152 / 100% Status: Golden Lunchbag Join Date: Nov 2007 Location: Florida Posts: 2,737	I guess I deserve a big "duh" for that one, huh? Thanks for clarifying!! __________________ No longer actively trading!

01-03-2008, 05:53 PM	#16
Lesley Lesley is hanging out with Friends here in FLR! User is Offline TR: 373 / 100% Status: Platinum Lunchbox Join Date: Jun 2007 Location: So Cal/FLR Full Time Mentor Earning $$$ From Home! QUESTIONS? SEND ME A PM ANY TIME! Posts: 6,160 Blog Entries: 1	Thank you for taking the time to share this great advise with everyone. I'll know what details to bring with me to my accountant! Lesley __________________ **Questions? Ready to Get Started? I'm Here to Help You!** Let Me Guide You * Full Time Mentor and Trader * I've made $1,460 in 1 WEEK! LOOKING FOR ANOTHER MONEY MAKING OPPORTUNITY? Send Me a Private Message for More Info!

01-03-2008, 10:45 PM	#17
angelsmosaic angelsmosaic is enjoying FreeLunchRoom! User is Offline TR: 6 / 100% Status: Brown Paper Bag Join Date: Dec 2007 Location: Central Missouri Posts: 61	This is very informative. Thank you for posting it. Even though I don't have a need for it on this year's taxes, I plan to in 2008!

01-04-2008, 06:56 AM	#18
sullx sullx is enjoying FreeLunchRoom! User is Offline TR: 147 / 100% Status: Bagging their own lunch Join Date: Dec 2007 Location: Centennial, CO Posts: 693	Question for you. As far as taxable inflows, do we only count the money received? Because say a freebie company pays out $40 I may only receive $38.54 after the $1.46 paypal service charge is taken out. Should I record both numbers? Which amount will be taxed? Thanks. __________________ 100% P A Y O U T S ! ! ! iTrader = +145 PM ME Make $2000.00 a month, and keep all of it!! I did in August (see my thread)! NEW? I will TRAIN U for free! Trade SAFE 145+ TRADES! MY TRADE THREAD 100% PAYOUTS

01-04-2008, 07:12 AM	#19
tbirdjak tbirdjak is enjoying FreeLunchRoom! User is Offline TR: 13 / 100% Status: Paper or Plastic? Join Date: Nov 2007 Location: Lancaster County Pennsylvania Posts: 439 Blog Entries: 2	Great information! Great information and just what I was looking for, not that I need it for last year, but will definitely need it this year. Thanks! __________________ Newbies welcome. Easy one credit sites!! Sites with one referral cash out! Click here to trade with me!

01-04-2008, 09:26 AM	#20
dtaylor5 dtaylor5 is enjoying FreeLunchRoom! User is Offline TR: 31 / 100% Status: Golden Lunchbag Join Date: Mar 2007 Location: Houston and on Freebie Sites! COME JOIN ME! I'm Verfied. Posts: 2,511	I still don't understand why part of the costs at least of a computer used just for this would not be considered a deduction? In order to do freebies, you need a computer and an internet connection from home- It's not possible with any other- So, if a person purchased a computer for doing freebies, it seems a little strange to not be able to deduct at least some of the cost of buying it- Now, someone could reasonable argue that the computer was not used solely for freebies, but you could fairly easily say that it could be 25-50% of the time- and then there is the question of whether to declare as a hobby or business- is there any benefit of doing this one way or the other? there is a little time to get this together, but just wondering for now what I should be trying to do-thanks for the great post- i appreciate the time it took you to put it together. Earle __________________ Having trouble getting referrals? I can help. Ask me for details

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