Dynadot

Parking and Taxes

Namecheap

Jak Blak

Established Member
Impact
13
I have no sales, but I am making a couple thousand on parking - maybe a bit more than my net pay for one month at work. Live in the US. What is the legal / legitimate way to report what I make parking and pay my fair share of taxes? Also can I deduct my purchases from this year? Renewals before I report? Last year I asked my parking company for a 1099, but that doesn’t allow me to subtract purchase / renewals. It just says I earned X. I may have overpaid in taxes because there was no recognition of what I paid for my donains. I want to do the right thing and not get into any trouble. I would also like to be able to keep some of my parking profits.
 
Impact
13,043
Hi

expenses from domains, can be deducted from income earned on/from them.

also, you may have to pay some "Self- Employment" taxes

best advice, if you have job and do domaining as a hustle, then it's best to ask your employer to deduct extra tax from your paycheck, to help cover any tax due the next year.

imo....
 
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Jak Blak

Established Member
Impact
13
Hi

expenses from domains, can be deducted from income earned on/from them.

also, you may have to pay some "Self- Employment" taxes

best advice, if you have job and do domaining as a hustle, then it's best to ask your employer to deduct extra tax from your paycheck, to help cover any tax due the next year.

imo....
 

poweredbyme

Top Contributor
Impact
839
In most countries income tax differs based on frequency of income.

tax authorities don't allow deducting of expenses if the income is not continous. If the income is continous (e.g. if you receive multiple payments in a year or in a 2-3 years period) then you can deduct expenses but will need to register business/company under your name.
 

poweredbyme

Top Contributor
Impact
839
In other words, you are not allowed to deduct expenses if you don't have a registered business with a tax auth. I don't know the exact rules in the US or in any particular country. What I wrote is a general rule. You need to make your own research and look for an expert advise.
 
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