Are website subscriptions Tax Deductible?

Question

Hello,

My wife and I use skip tracing websites like BeenVerified and Spokeo to Skip Trace some of our leads, like returned mail.

Is this a cost that I put under Business Cost at Tax Time, and Can I put those subscriptions on my Business Card or would that enable someone to piece the veil?

Anyone have any experience with this?

Darren Bodle · Answer

Same here Account Closed ! I'm glad I found this thread. Got good tips from Michael Plaks that I can apply to our property management business. Just hired a virtual assistant who specializes in bookkeeping last month to keep the books organized and ready for tax filing.

Michael Plaks · Answer

@Joshua Dees

Depends on the website, of course. Those you listed are ok, but Match.com is not. ;)

One caution: if your REI business is strictly buy and hold, and you have not yet bought any properties - then you are not  eligible for the deductions in 2018. Landlording business requires at least one rental property in service for the tax deductions to start.

All business expenses, including subscriptions, should be paid out of the business accounts or with a business credit card. If you pay it from personal funds, then it should be reimbursed from the business funds.

Basit Siddiqi · Answer

@Joshua Deespayments need to be ordinary and necessary to your business for them to be deductible.It looks like it is ordinary and necessary for you to use skip tracing websites to further your business and I would argue them to be deductible.You should consult with a lawyer if the payments should be made out of a business account. It seems like you have an LLC so you should treat it like a business and not co-mingle personal/business accounts.

Bill Hampton · Answer

Yes, this is a legitimate business expense. Yes, you should put all business related expenses on your business credit card.

Account Closed · Answer

I'm glad I read this thread, and that each respondent mentioned that one should separate their personal and business accounts. I am not glad that I have been doing a poor job of this through my first flip. Thank you @Michael Plaks @Bill Hampton, and @Basit Siddiqi for what should have been painfully obvious advice to me.

Joshua Dees · Answer

Major THANK YOU to all of you for replying/ taking part in the conversation

Are website subscriptions Tax Deductible?

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