Every server should be run like this

Adzter · 2012-05-24T00:59:24.551692+00:00

Because it was professionally hosted it costs more. And it's not just more electrical costs, theres also upgrades to the system(s), more cooling costs, a huge amount of time sinks, increased internet. He went down the path of "i'll build a better server!" and then went to professionally hosted systems. He's got a beast of a computer for other work, and now doesn't have to worry about cooling his computer, faster internet, etc.

Adzter · 2012-05-24T00:56:53.209971+00:00

Sure - he started up a busines (minecraft servers). He was putting money into hosting the content (the server), advertising, domains, professional level forums, etc. And - this is the important part - he had an exclusive area that he played minecraft in. He had a separate computer he played minecraft it, it was on a desk he didn't use except while playing minecraft, etc.

He was essentially running a business out of his home, and since he met the exclusivity test, he was able to deduct a portion of his rent, his utilities and a few other things that didn't have to deal exclusively with the business and was in general. Now, we weren't able to actually use that stuff - that gets into indirect costs vs direct costs, and not being able to take al oss on indirect costs - but it worked for him because of the direct costs he had.

TL;DR he started his business (minecraft service) and we were able to use general business tax strategies in order to help him get more money back.

Adzter · 2012-05-24T00:49:14.109288+00:00

I have no clue. I don't play on his server - for the longest time I didn't "get" multiplayer minecraft, and now that I do he does mostly admin and very little playing, so i play elsewhere.

wadsworthsucks · 1 day

Hey Wadsworth - sorry I can't help you with the loan (The car I have just broke down while i'm traveling visiting my folks in IA, gotta pick up a new one while I'm out here).

Good luck :-)

Adzter · 1 day

You're not correct by the way - I do taxes for a living. You're required to record any amount in a given month. However, he's able to depreciate assests in relation to his business, so the he ends up with a tax loss at the end of the year. Not that difficult to do.

Adzter · 1 day

A friend of mine started a small-scale, successful server. He started it with 20 players - he can afford 20 players amonth.

The server has grown to 150 players or so simultaneously, he can no longer afford it as-is. The people pay more than enough to cover the bills every month - at the end of the day, theres probably an extra $100 left over every month (I don't know exact figures of what he recieves in donations or what it costs, but a napkin analysis figures he should get at least that much more a month). I don't see that as being wrong, or bad in anyway. It's simply a different way of doing things.

statguy · 2 days

So there are two different things that you get: One is the standard deduction for you, and for your wife (Each one is worth $5,800 - total is $11,600). Theres also something called the standard deduction - this year the standard deduction was worth $3,700. Now, I've been drinking and don't have the forms in front of me, but you take line 38 (which I'm pretty sure is your adjusted gross income), and subtract $11,600 and $7400 from it and that's your 'taxable income' for the year. I mean, it wont be since you got a raise, but it should be closeish. From that point you go to the IRS tax tables, figure out how much money you'll owe at the end of the year, and then figure out how much you actually wanna pay in, and how much you're willing to have to pay.

statguy · 2 days

The standard deduction increases from $5,800 to $11,600 (As of today - congress may up the numbers a bit). If you didn't have $11,600 worth of deductionss: using the itemized is probably greater. You're also getting the personal exemption from her.

It's always tricky to go into "A quick and approximate way to caclulate what my taxes would be now"; you could take what your Adjusted Gross Income was for last year (if you'll be making roughly the same amount), find out what the tax due on that for someone married, filing jointly is, and there you'll have your yearly total. That's the quick and easy way, IMO.

statguy · 2 days

That depends on what your goals are. Do you prefer to have a bigger refund at the end of the year (with less money during the year), or would you rather pay money at the end of the year to cover what you didn't pay?

If you would rather get a refund, don't change anything; keep with holding at the single status; (or change it to 0). If you would rather get back close to nothing, change your W4 to 'married' with 3 exemptions.

llaskin · 3 days

Because many, many places give the first consultation free of charge, or a phone call; the information he's asking is pretty straight forward and doesn't really have very much federal tax implications. And because we know that, believe it or not, some people can't afford a $200 consultation fee, even if it'll save them thousands later.

llaskin · 3 days

And yet in r/taxes, it's usually a great starting point. I don't know everything and anything, but I know quite a bit about taxes, and anytime i see tax advice that's wrong, I comment asking if they're sure, and any sources so I can read up on it. Though, ultimatley we can't know everything - clients had casually said things to me in the past that made a WORLD of difference in their situation; for instance - a good question in this scenario is, since it was gifted to him, what's the basis for the property going to be, so he can properly depreciate it? Is it 0? Is it what it is worth, or what it was purchased for? I don't know the answers off the top of my head, but I'm sure someone at r/tax does. There are a bunch of pretty active tax-orriented CPAs / lawyers / EAs there, and they're pretty good about getting the correct answer [with the information given], as well as asking the relevant information.

Of course, we never know the local laws, so that stuff varies wildly.

robotparker · 4 days

Right - it could go either way, though! Hopefully OP will read the comments and figure out what the correct answer is / go ask questions to see if it's deductible!

robotparker · 4 days

I downvoted you, and the reason I downvoted you is because you're incorrect. ANY health care expense, that's over 7.5% of your AGI is deductible, as long as it is not paid with pre-tax dollars. If it's already not included in your AGI - you've already got the deduction for it. Really, that's the best case scenario - you get the deduction no matter what; don't have enough itemized deductions to get over the $5800/8500/11600? Doesn't matter, got deducted.

He can also get an HSA and save money from tthere hat angle as well - it's not a "one or the other" deal, though I don't believe medical costs paid out of an HSA are deductible as well - though I may be mistaken.

robotparker · 4 days

Since it's not from the employer, I'm going to imagine that it is not pretax dollars, but this is the correct answer - if it's pretax dollars it is NOT deductible; if it is post tax dollars its entirely deductible.

c0mbusti0n · 7 days

I thought it started to be phased out at 125k; not completely gone there. I'm not looking at the IRS regs atm, just going off top of my head so I could be off - I thought you could contribute until 139K or so, only a reduced amount.

jkyesyes · 7 days

Really? I tried the Bricco in the doubletree 2-3 times when I was looking for a place to live out here, had nothing but great things to say about it.

Of course, I never went back after that - but I thought their breakfasts and lunches were all good food

dearastronomer · 7 days

Eh, I won't eat at Harris pizzza anymore. I once ordered a large pizza there, and a large pizza to go. Forgot my large pizza to go, drove probably half mile, turned around went back. Called them to tell them I forgot it, and I was coming back for it.

They ate half of the pizza while I was gone, gave me the pizza back, and wouldn't refund the cost of it. I bitched at a manager, he said tough shit. Called back the next day, asked for a refund of the large pizza, they told me nope.

Never again will I eat there.

gewfyu · 7 days

If you have a nexus you're required to collect the sales tax. If you don't than the buyer is uspposed to send in the sales tax.

dinodynamo · 8 days

Sorry, but you're incorrect. Every dollar he puts into the loan will reduce the distribution amount by $1; so whatever he pays back this year helps reduce his distribution by that much; which will also lower the 10% penalty.

The penalty doesn't occur now, it occurs at the end of the year. He still has a year to fix it; he hasn't been penalized yet.

JIVEprinting · 8 days

I believe it is immediately, though I'm going to wait for someone who has practical knowledge of barter gains and losses; other than "It can happen and does exist and I need to ask clients about it", I don't know a whole lot

Wineagin · 8 days

This, right here. Though, I believe if you incurred expenses for the business before you started doing business, doesn't that add to your basis of the LLC and is NOT a deductible expense? Or am I off on that one - my head is fuzzy this evening and I'm not sure which is correct :(

mojang_apologist_hat · 11 days

But "new money" is not the same thing as a new release. When Rockstar releases GTAIV for computer years after GTAIV for Xbox, did everyone shout how GTAIV was released in such a short period of time? No, it's obvious that most of the game was already done, and it was minor, small changes that were made, and optimizations.

Just because you have a new market doesn't automatically mean that you've churned out a 'new game' - it's the same game, released on a new platform.

PhillyGreg · 12 days

Gone at 11:03 EST!

kikiolymarie · 12 days

And sometimes, it will be marked as gone, yet days later I click on the link and it's still available - have made a couple of bucks that way.

DragonGirl724 · 12 days

I got through the whole thing, got my unique ID number and was told "This survey has been closed" - hope there won't be any shenanigans...

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