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#1
04-13-2007, 07:11 AM
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 Re: How to report business income when paid by credit card? cascadiades...[at]comcast.net wrote: - quote - > I just started a sole proprietorship selling products over
Report $100 in income and $3 in expense.> the web > Customer pays $100 for product. =A0Credit Card processor takes > 3% off the top and $97 gets deposited in my account. In > addition, Credit Card processor charges a small flat monthly > charge to maintain the account. > Do I report $100 as income and $3 + monthly flat fee as an > expense? > Or do I report $97 as income and do not report the $3 as an > expense, only reporting the monthly fee as an expense. > I'm confused because I never receive the gross selling > amount; only the net amount after the 3% is taken. << ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- > |
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04-12-2007, 10:32 PM
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| Re: How to report business income when paid by credit card? cascadiades...[at]comcast.net wrote: - quote - > I just started a sole proprietorship selling products over
Report the $100 as income and the $3 plus monthly flat fee> the web > Customer pays $100 for product. Credit Card processor takes > 3% off the top and $97 gets deposited in my account. In > addition, Credit Card processor charges a small flat monthly > charge to maintain the account. > Do I report $100 as income and $3 + monthly flat fee as an > expense? > Or do I report $97 as income and do not report the $3 as an > expense, only reporting the monthly fee as an expense. > I'm confused because I never receive the gross selling > amount; only the net amount after the 3% is taken. as fees paid. << ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== > |
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#-1
04-12-2007, 04:06 AM
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| How to report business income when paid by credit card? I just started a sole proprietorship selling products over the web Customer pays $100 for product. Credit Card processor takes 3% off the top and $97 gets deposited in my account. In addition, Credit Card processor charges a small flat monthly charge to maintain the account. Do I report $100 as income and $3 + monthly flat fee as an expense? Or do I report $97 as income and do not report the $3 as an expense, only reporting the monthly fee as an expense. I'm confused because I never receive the gross selling amount; only the net amount after the 3% is taken. Ed << ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- > |
| Tags |
| business, card, credit, income, paid, report |
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