Stephani Stephenson on mon 20 jan 03
How do some of you categorize your art/business related internet
expenses
for example, if you have a business website
is it a utility? (i pay my provider by the month, like the phone
company???)
is it advertising expense??? (it is how you get the word out on your
goods)
is it an office expense? ( email correspondence /logs of conversations
with customers)
is it just part of the Cost of Goods sold? (your price structure end up
having to pay for the time you spend on upkeep , etc. of the site.
I can picture it as part of all of the above!
As yu may guess I am a better gatherer than I am a sorter........
Stephani Stephenson
steph@alchemiestudio.com
Olivia T Cavy on tue 21 jan 03
Stephanie,
Maybe it's warped CPA thinking, but I see monthly internet expenses as
advertising. That's the real point of why you have a web site, isn't it?
You wouldn't be wrong to put them in office or utility, but I like
advertising better.
They're definitely not Cost of Goods Sold, which are expenses that go
directly into the product IMHO.
Bonnie
Bonnie D. Hellman, CPA in PA & CO
PA work email: oliviatcavy@juno.com
PA home email: mou10man@sgi.net (that's the number 10 in the middle of
the letters
On Mon, 20 Jan 2003 19:54:04 -0800 Stephani Stephenson
writes:
> How do some of you categorize your art/business related internet
> expenses
>
> for example, if you have a business website
>
> is it a utility? (i pay my provider by the month, like the phone
> company???)
> is it advertising expense??? (it is how you get the word out on
> your
> goods)
> is it an office expense? ( email correspondence /logs of
> conversations
> with customers)
> is it just part of the Cost of Goods sold? (your price structure
> end up
> having to pay for the time you spend on upkeep , etc. of the site.
>
> I can picture it as part of all of the above!
>
> As yu may guess I am a better gatherer than I am a sorter........
>
> Stephani Stephenson
> steph@alchemiestudio.com
>
>
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Gary Ferguson on tue 21 jan 03
I think the bottom line is any of the expense categories you choose are
justifiable (excluding COGS) and affect income the same way (reducing it).
So pick the one you feel fits the best and lump it into that category. Even
if the IRS didn't agree with the one you picked, moving it to a different
expense category would keep your basic return numbers at the same value.
The main thing to keep in mind is not necessarily what category an expense
goes into to, but whether the expense can be justified and documented as a
valid business expense.
Gary Ferguson
Raku Clay Artist
Nampa, ID 83687
Visit my site at http://www.garyrferguson.com
Subscribe to Just Raku Newsletter at http://www.JustRaku.com
----- Original Message -----
From: "Stephani Stephenson"
To:
Sent: Monday, January 20, 2003 8:54 PM
Subject: Another tax question
> How do some of you categorize your art/business related internet
> expenses
>
> for example, if you have a business website
>
> is it a utility? (i pay my provider by the month, like the phone
> company???)
> is it advertising expense??? (it is how you get the word out on your
> goods)
> is it an office expense? ( email correspondence /logs of conversations
> with customers)
> is it just part of the Cost of Goods sold? (your price structure end up
> having to pay for the time you spend on upkeep , etc. of the site.
>
> I can picture it as part of all of the above!
>
> As yu may guess I am a better gatherer than I am a sorter........
>
> Stephani Stephenson
> steph@alchemiestudio.com
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