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question.jpgIn Federal Income Tax

Can I take deductions related to my Google AdSense earnings?

Whether you have set up a business entity to run and maintain your website and any related business, or you are doing it yourself as a sole proprietor, you can deduct related expenses (although if you set up a business, the deductions would appear on the business’ tax return, not your personal return). You can take the same types of deductions as any other business, but within the context of a website using Google AdSense, the most typical and obvious deductions would include:

1. Fees relating to registration of your domain name.

2. Fees relating to your web-hosting services.

3. Advertising expenses, such as Google AdWords, the purchase of banner ads on other sites, etc.

4. Fees paid to programmers or developers for setting up your website or any related software.

5. Cost of any software programs used for your website or business.

6. Cost of any books or research materials purchased for use in setting up your website and business.