Comments on: Taxes on an internet business with no profit? http://www.infinityfish.com/taxes-on-an-internet-business-with-no-profit/ SEO internet marketing tools, Local internet marketing consultant service seo Fri, 06 Mar 2009 13:39:59 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: StephenWeinstein http://www.infinityfish.com/taxes-on-an-internet-business-with-no-profit/comment-page-1/#comment-581 StephenWeinstein Sun, 22 Feb 2009 11:36:59 +0000 http://www.infinityfish.com/business-taxes/taxes-on-an-internet-business-with-no-profit#comment-581 Since you do not intend to ever make a profit, it is a hobby, not a business. Therefore, you get no tax benefit. If you do make a profit, you must pay tax on it. Because you have no profit, you owe no income tax. However, you may owe other taxes, especially if you have employees. If you have employees, you must pay social security, FUTA, etc. Also, you may be required by state or local law to collect sales taxes from your customers and transmit that money to the state or local government.<br><b>References : </b><br> Since you do not intend to ever make a profit, it is a hobby, not a business. Therefore, you get no tax benefit.

If you do make a profit, you must pay tax on it.

Because you have no profit, you owe no income tax.

However, you may owe other taxes, especially if you have employees. If you have employees, you must pay social security, FUTA, etc.

Also, you may be required by state or local law to collect sales taxes from your customers and transmit that money to the state or local government.
References :

]]> By: v b http://www.infinityfish.com/taxes-on-an-internet-business-with-no-profit/comment-page-1/#comment-580 v b Sun, 22 Feb 2009 11:04:59 +0000 http://www.infinityfish.com/business-taxes/taxes-on-an-internet-business-with-no-profit#comment-580 This hobby is just that a hobby. Income goes on 1040, line 21. Expenses, up to the income, goes on schedule A as a miscellaneous expense.<br><b>References : </b><br> This hobby is just that a hobby.

Income goes on 1040, line 21.
Expenses, up to the income, goes on schedule A as a miscellaneous expense.
References :

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