[grdred944]

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I talked to my accountant about this sometime back.

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You need a new accountant. This is not only wrong, it is is ridiculous.

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There aren't very many people in this world I trust very much, but this guy has saved me thousands. Without specifics, your post is ridiculous. Make a reasonable argument.

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Temp made one. I'll make another...

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Money placed in an online site is sort of like money placed in stocks; at the end of the year, you count what you cashed out as income, what you put in as investments, and pay tax at standard rates on the difference. Rake could well be deductible as a business expense. It may even be handled as capital gains rather than straight income.

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No offense to your accountant, but if he really operates this way he is insane and you do need a new accountant.

By using his logic, I could buy a hooker and tell the government that it was sorta like a stock investment. On the off chance I would knock her up I could later use the benefits of having a child for tax savings. Well, technically, I would be renting the hooker which would open up even more possibilities re. to whether I could capitalize the payment.

The IRS doesn't go for words like 'sorta'. Depositing on a web site is not like investing in stocks and rake has nothing to do with business expenses. And certainly cannot be handled as a capital gains.