If you’re involved in e-commerce, then you know how important it is to have your own mailing list. marketing ‘s no different than if you were trying to market a brick and mortar business – with no traffic, you have no business! As you may be aware, however, there are some difficulties associated with the rental of mailing lists. Let’s take a look at these issues to help you avoid them when creating or renting mailing lists.

First, you want to ensure that the mailing list that you rent is an accurate reflection of your income. You can do this by either asking your list broker to review the list for accuracy or using a similar process. For example, if you’re a physician, your physician assistant’s mailing list would likely not include addresses of individual patients in order to avoid the potential for patient fraud. By reviewing the list provided to you by your list broker, you can ensure that the addresses on the list truly reflect your patients and are updated accordingly.

Second, marketing want to check to make sure that the mailing list is current. There are two reasons why this is important. First, there are many cases where a person’s name may have changed since they first signed up with a list provider. This can create a problem with the IRS when it tries to take any tax liability out of your business or personal accounts. Also, it may impact the ability of your CRLC to collect monthly disposable income taxes.

Third, you also want to verify that you are able to deduct expenses related to mailing lists. When you rent a mailing list, you should not simply assume that you can write a cheque and claim your expenses off against your income-expense statement. Every business must obtain an income-expense statement from the CRLC. marketing is available at their website. They also have downloadable versions for most major operating systems. In addition, all rental applications provide an additional receipt at the end of each month that shows the deposit and the applicable deductions made.

There are a few things that you need to consider when you rent a mailing list. When you rent a mailing list, you should be aware of the separate property and casualty loss that comes with renting a mailing list. Property and casualty loss is a type of income-tax deduction that only applies to sales of goods or services to customers in a trade or to others who are related to your business. You can deduct these losses if you can reasonably consider them as incidental to your daily business activities. You can deduct unrelated business taxable income when you sell property or services related to your unrelated trade to another person who is related to you (but does not include a rental activity).

Similarly, you can deduct expenses incurred for mailing lists, such as for postage and brokerage, as long as you can reasonably consider these charges as part of your regular expenses. Also, when you rent a mailing list, you need to know whether your list rental arrangement allows you to keep the list at the same address that you maintain for your own business. This is called a “frey” address. If you rent a mailing list, you can’t use it for your own business. However, if you use your mailing list at your home address and can establish that you meet all of the other requirements (such as being a United States citizen) then you may be able to claim a tax reduction on your income-tax return.

One of the ways that you can avoid paying tax on the rental of its mailing lists is to arrange to rent the mailing lists of related businesses. For example, if you operate a carpet cleaning business, you could rent one of the bulk mailing lists that are generally provided by a list broker. The list broker would then give you control over who rented the list and who in turn rented it to a related company. You would not have to pay taxes on the rental of the mailing list, but would only have to pay tax on the amount of the fee that you paid to the list broker, which would be taxable under the separate tax code for rental of unrelated business taxable income.

If marketing lease your mailing list, you will be taxed on its rental if you can establish that the lease — which typically refers to an agreement between you and the list broker — describes both a usage agreement or a reservation to use the mailing list for a specific period of time. In addition, you will be taxed on the amount of the rental advance, and you may be liable for additional tax if you rent more than one mailing list. To determine if the lease describes a reservation or usage agreement, you will need to consult a tax expert, or your accountant, who may be able to assist you. Even if you cannot reduce the lease to a lease/sale combination, you may still be able to take advantage of certain tax deductions. Speak with a leasing/listing firm today about how you can make your lease payments, and learn about ways to reduce your mailing list rental.