Processing Fees Taxable?

[Deleted User]

If I use an online payment processor such as CCBILL who take a small charge for processing the transaction do I declare my income as the amount before or after CCBILL take their cut? At the end of the day what goes into my account would be the amount AFTER the processing fees but perhaps I need to include the fee in my profits and then in the deductible expenses?

Laurajo_2

Strictly, you declare the total amount of income received (ie before the processing charge) as income.

You then include the processing charge as an expense.

zygurat789

Laurajo wrote: »

Strictly, you declare the total amount of income received (ie before the processing charge) as income.

You then include the processing charge as an expense.

The rules of the game are:

You ALWAYS declare the gross amount of income and show all the expenses as a deduction.