Mar
I’ve a forum website with 500 active members. Our maintenance costs each year are $492 USD ($480 USD hosting, $12 USD domain name). The members have been “contributing” money to my PayPal account, so I put it towards the costs of our forum.
For 2008, I tracked $620 in income, and $258 for expenses.
First, do I claim this as income? If so, what type of income is it? Am I able to deduct business expenses?
Second, it's a non-profit spirituality forum that provides free service to community that is beneficial. Is there a way I have the ability to register it as a non-profit group/organization so the member contributions aren't taxed?
I’m 21 years old, and I don't know anything about taxes.
Thanks for the info.
Answer:
Assuming you really are in Canada where you asked this question:
This income is self-employment income. You’re operating a sole proprietorship and will file Form T2125, Statement of Business or Professional Activities with your T1 tax return.
http://www.cra-arc.gc.ca/E/pbg/tf/t2125/…
You can deduct business expenses incurred in the earning of this income.
You’ll need to convert USD to CAD at the rate on the dates you received the income.
As for information on becoming a Registered Charity, look here:
http://www.cra-arc.gc.ca/tx/chrts/prtng/…
I have the ability to tell you that you probably don't qualify.
For more details about running a business and taxes, see the link below.