Tax question

[transistor]

Sorry for the noob question... I've been making most of my money from Adsense. Only recently have I started paying for ads. Am I able to deduct my ad purchasing expenses from my revenue? If not, doesn't that make determining if a campaign is profitable or not a little harder?

 

[machinecontrol]

Yes, any expenses(ads,hosting) can all be deducted. Businesses are taxed only on profit.

 

[dangregory]

That's right. Offline ads that you buy, ads on Adwords or in an enewsletter, all of it counts as advertising expenses for your business.

Hosting, domain name registration, newsletter services, ebook, book, and magazine purchases (if books are helping you with research for your business), software expenses, general computer upkeep or purchases - these are just some of the many things you would be able to deduct as expenses.