2012-01-13, 11:14 PM
Locked Wrote:Quick question, pardon my ignorance.
But why would AlertPay and MoneyPak be considered a taxable income? I'm pretty sure the only tax they get would be per purchase for processing right?
It's essentially ISP funds, although I can't answer specifically as I don't know where this owner lives, but typically he would need some type of business license as he is in fact an online business. So he's going to need a DBA and report that income on his schedule C on his federal return. This is all under assumptions of basic USA practice though. Even as an out of country business has limitations, although I'm not familiar with that aspect
@killer
Considering that throughout the year they had buy 1 get 1 free, and even free licenses for nearly 5 months, I think you're overestimating it by assuming it stays at a stagnant price all year round.