★ TouchArcade needs your help. Click here to support us on Patreon.

TAXES-How much?

10-19-2009, 05:59 PM
#1
Joined: Jan 2009
Location: App Tech Studios, USA
Posts: 1,363
TAXES-How much?

I was wondering what how much I will have to pay for taxes for the money I have earned from my games? I understand that it varies by place and by how much you make, but I would like to get a general idea of how much Uncle Sam will be putting in his back pocket.

I live in OR, we have no sales tax, but a VERY high income tax. Apple will send the 1099 form, correct? Also, what can I write off on my taxes and what will I have to stretch out over a certain year period? eg: They will only take off (probably) 1/4 of the cost of my compute, because the government (of the US) thinks that I will keep it for 4 years (not happening).

Basically, I want to know what other people have experienced in the taxes department.

Thank you!

Last edited by WellSpentYouth; 10-20-2009 at 01:32 AM. Reason: Was missing the word "high"
10-19-2009, 06:05 PM
#2
Joined: Oct 2009
Posts: 343
Get an accountant, thats the best advice anyone can give you. If you make more than 100k this year then taxes will be very high. I have owned my own business's for about 10 years now with years where i've made over 300k, and those years uncle sam has really stuck it to me. What sucks is when you have a down year they don't come bail you out, but when you have a banner year they put the screws to you, big time.

10-19-2009, 06:41 PM
#3
Joined: Jan 2009
Location: App Tech Studios, USA
Posts: 1,363
Quote:
Originally Posted by jwm2 View Post
Get an accountant, thats the best advice anyone can give you. If you make more than 100k this year then taxes will be very high. I have owned my own business's for about 10 years now with years where i've made over 300k, and those years uncle sam has really stuck it to me. What sucks is when you have a down year they don't come bail you out, but when you have a banner year they put the screws to you, big time.
I have an accountant, but I want to avoid paying the few hundred $$$ per hour fee as much as possible I guess I will ask when he does my taxes, but is there anything I could be doing in the mean time to help make the taxes be lower? I am keeping track of almost everything that I spend for App Tech Studios.

Wow! It sounds like you have a great business going! I just make games more for a hobby. I can tell you (atleast from where I am now), I am not going to make over 100k, but I think I will still get hit with around 30-40% taxes
10-19-2009, 06:48 PM
#4
You should probably get an accountant. But as a good rule try to save around 40% just in case. Apple will not send you a 1099, you need to keep track of your income brought in from Apple.
10-19-2009, 07:21 PM
#5
Joined: Sep 2009
Location: Vancouver, Canada
Posts: 977
Send a message via MSN to MindJuice Send a message via Skype™ to MindJuice
Generally speaking, a good accountant should be able to help you save more in taxes than their fee. At least that's been my experience. Of course as you learn more of their "tricks", this probably becomes less true.
10-19-2009, 08:06 PM
#6
Make more games!!!

Robert keep making new games so you have expenses to cover your income!
Subcontract your development work to other companies to generate expenses.

Create a cycle of creativity that you constantly feed to keep App Tech Studios in the spot light! You have the most consistent free app on iTunes use it as a great advert for your future games.

More games = less taxes
10-19-2009, 11:53 PM
#7
Joined: Jan 2009
Location: App Tech Studios, USA
Posts: 1,363
Quote:
Originally Posted by Syndicated Puzzles View Post

More games = less taxes
More games is less taxes? Why would that be! The more games I make, the more money I make, the more taxes I have to pay, right? I have a virtually zero developement cost (except new Software and Hardware), so there isn't anything I can write off the taxes with each new game.

Quote:
Originally Posted by jonaswills View Post
You should probably get an accountant. But as a good rule try to save around 40% just in case. Apple will not send you a 1099, you need to keep track of your income brought in from Apple.
Ok, it will take me awhile to catch on to the tricks, because I have am younger and I have little experiences with taxes.

Thank you!
10-20-2009, 12:00 AM
#8
Don't do the work all yourself hire people that can invoice you for their services!
Invoices=more expenses

Professional help= better games + you improve working along side talented people!

It is a win/win situation for you all around! Just do it!
10-20-2009, 12:29 AM
#9
Joined: Jan 2009
Location: App Tech Studios, USA
Posts: 1,363
Quote:
Originally Posted by Syndicated Puzzles View Post
Don't do the work all yourself hire people that can invoice you for their services!
Invoices=more expenses

Professional help= better games + you improve working along side talented people!

It is a win/win situation for you all around! Just do it!
Potentially, yes, but I don't want to use all of the money that I have earned, only to end in a complete fail. I use a small amount of what I earn to make my next game, each time, that small amount gets a little bit bigger.
10-20-2009, 12:48 AM
#10
Robert, saving money is a great trait! Paying taxes is a liability especially in the US. Get professional help in all departments. A good accountant would tell you the exact same thing, invest in your (and yourself) companies future create expenses to improve your taxable income. So you have made 100 000 dollars and you have 5000 in expenses? You need to improve that ratio.