I know I’d need to discuss with a tax advisor for specifics, but in meantime can anyone tell me what percent of the total cost of products purchased for reviews typically tends to be deducted on taxes as business expense in US? I’m assuming percentage may be based on actual use. Just wondering what experiences other WA members have had.

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SondraM Premium
As a CPA, I like Nathan's answer below. (I love your question also.)

That said, use common sense. I have't read much "case study on this exact issue. Yet, I have read a lot about business expenses (tax write offs) related to horses.

Many times people are not running horse business as a business. They treat it like a hobby instead yet want to deduct expense.

So, use common sense -

Don't go purchase a $1,000 television, to replace the one in your living room that died, that you will be watching every night with plans of reviewing it for a brand new website that you have just started. This is especially true if if you have no experience with electronics business or online affiliate marketing. .

A $5 bottle of shampoo - probably not a big deal. $49 training or course or theme.. no big deal.

Just be careful for things that more personal of nature.

Treat your business like your business and you will be ok.
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SnazzyIT Premium
This is difficult to answer as we are from all-around the globe. What I do know is that each affiliate program will either ask you to complete a tax form or not. I am from New Zealand and had to complete a form for Amazon and other programs. However,some of the programs I joined are in UK and they also have different requirements and rates. Therefore, percentage of tax will differ from country to country.
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nathaniell Premium
Should be 100%. If you are purchasing a product 100% for your business, then it's a tax write-off.

Businesses spend money on product testing all the time! Many of them even start out losing money before they make money down the road. They may invest $10k, and not make it back for a year or two.

If you spend a hundred bucks or whatever on product to review for your website every month, I doubt that will cause you any issues. Your ROI will be much faster than typical brick and mortar businesses, since you can make your money back and start profiting in just a few months.

That's my non-tax-professional advice!
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MelWaller Premium
If you are using a product for your business, I would assume it's 100%.

I understand you are buying a product, doing a product review and then perhaps using it for personal use afterwards. Since I have not dealt with this specifically in my business, yes I would consult a tax person.

If you did a product review and discarded the item, I can't see how that wouldn't be 100%.

Keep us updated as to what you find out.

Mel
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