Linode Forum

[brocktice]

I use my Linode to host a bunch of business-related stuff, but I also use it to host my personal web site, pictures of my daughter, etc. For personal computers it's easy to calculate business vs. personal use -- either it's 100% business, or you log/calculate how much you use it for each.

With a server it's not so clear. Number of sites? Storage space? Bandwidth? Surely someone else here has had this problem. How did you figure out the business use of your linode (vs. personal)?

[Guspaz]

I don't know anything about US tax law, but AFAIK in Canada, if it's used even partially for business use, it's entirely tax deductible as a business expense... As in, a computer in a home office is a business expense even if you also use it for gaming and not just work.

[jhmartin]

Seems like relative % bandwidth makes sense since it is a monthly consumable resource that identifies the usage of the linode; best to consult with a qualified tax adviser to be sure.

[vonskippy]

Asking TAX advice on a VPS forum.

You're either crazy stupid or really really really brave.

Tax laws vary depending where you live - get a local TAX CONSULTANT who knows what they're talking about to answer your question.

[brocktice]

vonskippy:

Quote: get a local TAX CONSULTANT who knows what they're talking about to answer your question.

This is perfectly valid advice -- keep in mind I'm using this to supplement other resources, not as a sole resource. Thank you for your warning, though.

I have spoken with some tax advisors, and read the relevant tax code, but this is really a gray area. The IRS is pretty keen on the way things are 'typically' done, so I thought it couldn't hurt to see if anyone here has had a similar issue and what they did to address it.

There aren't a lot of tax advisors with specific knowledge of this domain. If you (or anyone else reading this) know of any in the US I'd be most grateful for any recommendations.

[brocktice]

Guspaz wrote: I don't know anything about US tax law, but AFAIK in Canada, if it's used even partially for business use, it's entirely tax deductible as a business expense... As in, a computer in a home office is a business expense even if you also use it for gaming and not just work.

Unfortunately that is not the case in the States.

[jed]

I've found, when preparing my own taxes, that if you even thought about using that business item for personal use you should just consider it personal. It makes the audit situation that much easier. *

* I am not a tax accountant and this is not the official stance of Linode, LLC. Certain exclusions apply, see store for details. Not valid in ID, NM, or UT, or when combined with any other offers. This copyrighted telecast is the property of Linode, LLC and any accounts, descriptions, or rebroadcasts of this post are prohibited.

[Guspaz]

jed wrote: I've found, when preparing my own taxes, that if you even thought about using that business item for personal use you should just consider it personal. It makes the audit situation that much easier. *

* I am not a tax accountant and this is not the official stance of Linode, LLC. Certain exclusions apply, see store for details. Not valid in ID, NM, or UT, or when combined with any other offers. This copyrighted telecast is the property of Linode, LLC and any accounts, descriptions, or rebroadcasts of this post are prohibited.

Bwaha!

[bryantrv]

Having recently been through an audit, personally I would choose a method- probably bandwidth, and use that.
Our auditor was very good, and in a gray area like this, he would accept a good faith effort at compliance.