You work hard every year to make a little extra spending money off of the internet or maybe working at a hobby or small business. Why then would you throw it all away at tax time? When you are claiming extra income you are allowed to write off you business expenses such as domain name purchases and webhosting. Your expenses go further than this, you have hardware and software, heating and utilites at your house, a percentage of the square footage that you use as your office, cell phones and perhaps even mileage in your car for your trips to the bank or your accountants office. The bottom line, keep all of your receipts for tax time.
I pesonally use a chartered accountant. I keep all of receipts and track it all year and then present them to him to tally up my taxes. His small fee, it's a business expense and I write it off. I could probably do them myself but with tax law changing every year I leave it to the professionals.
If you own a few domain names making some money start thinking about all of your expenses and if they relate to your business and keep all of your receipts for tax time. Who knows, you might even safe enough to get that nice car or even look into small business opportunities.
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