Tax Deductions for Your Online Business

If you run an online business, you will be pleased to know that there are tax deductions that you can take for your online business expenses. Today, we are going to be discussing the tax deductions for your online business.
Deductions for and EBay Sellers
If you sell goods or services on or EBay, you have to pay commissions to the companies. The good news is you can deduct these commission expenses by claiming them on your Schedule C under commission expense.
In addition, you are responsible for covering shipping fees on the items. You can deduct shipping and postage fees in Part V of your Schedule C by writing in Postage and Delivery or Office Expense.
Lastly, those who sell on EBay have to pay fees for PayPal transactions. You can write these fees off on your Schedule C too under the Cost of Goods Sold in Part III.
Tax Deductions for Those Who Run a Blog or Website
For those who run a blog or website you have to pay for domain and hosting. Both of these expenses are considered Computer and Internet Expenses, which can be written off.
If you use an email service, you can write off your expenses for those too. Either you can write it off as a Computer and Internet Expense or you can deduct it as an Advertising expense, if you use your email service for advertising purposes. Other advertising expenses would include Google Adwords and other internet service ads that you pay for.