A friend and I started a free ezine. A person is willing to pay us to advertise her book in our ezine. Do we have to legally pay income taxes on this? We were thinking about asking around $16 a year, because that is the price of the book. Penny for your thoughts!
2007-11-26 12:58:11 · 2 answers · asked by ecsluver 1 in Business & Finance ➔ Taxes ➔ United States
In Canada, this would be declared revenue. However, so are all the expenses which in your case could easily show as a MASSIVE loss, which if you pay income tax on personal income could off set your tax rate much like 401k contributions do.
There could also be some expenses which you could declare which could carry over as Tax Loss Carry Overs. These could be applied on future taxable income..
2007-11-26 13:04:37 · answer #1 · answered by tapnet1 3 · 1⤊ 0⤋
Not if you make $16 for the year. If you make over $399 though, you'd have to file a tax return and pay taxes.
2007-11-26 13:05:07 · answer #2 · answered by Judy 7 · 2⤊ 1⤋