Posts by jhunger

1013 posts Go Acoustic!
  • Has sold $125,000+ on Envato Market
  • Elite Author: Sold more than $75,000 on Envato Market
  • Made it to the Authors' Hall of Fame
  • Had an item featured on Envato Market
+5 more
jhunger
says

So yeah, there’s a lot of nervousness there. I can’t say that I’m going to leave AudioJungle fully, but I’m in the process of removing items from my exclusive account and two others (these were from a long time ago and aren’t really performing anyway), and am talking with my collaborator on another one to decide whether to call it quits there as well. My main account I’m going to leave open for now, though.

BTW, in case anybody’s reading this and thinking “OMG I should delete my profile!!!” I should clarify that there are multiple reasons for me wanting to close accounts outside of my main one. For me it’s an overall shift of focus and strategy, namely around the sanity perspective of maintaining one account and also making some of my work available for PRO submission. The tax issue is just one small input that’s spurring me to move the songs off sooner rather than later.

Ultimately I believe that it’s a good sign that Envato is taking more time with the US reporting issue, and hopefully once they have the input they need they’ll make the right decisions around it.

1013 posts Go Acoustic!
  • Has sold $125,000+ on Envato Market
  • Elite Author: Sold more than $75,000 on Envato Market
  • Made it to the Authors' Hall of Fame
  • Had an item featured on Envato Market
+5 more
jhunger
says

Absolutely!

I have my gripes from time to time, and am worried about recent developments on the tax reporting side, but I absolutely continue to love the Jungle as well. I’ve met a ton of great people up here and have been awed at both the talent of the authors and also of the way the staff has grown (and continues to grow) into a mature marketplace.

Congratulations, Matthew – living the dream :)

1013 posts Go Acoustic!
  • Has sold $125,000+ on Envato Market
  • Elite Author: Sold more than $75,000 on Envato Market
  • Made it to the Authors' Hall of Fame
  • Had an item featured on Envato Market
+5 more
jhunger
says

Hello fellow Americans,

I know this information might be buried somewhere in the many threads that have been locked, but I want to ask while the asking is good…

With regards to Envato’s new US tax policy; I know that we aren’t being issued a 1099 for tax year 2014, so therefore I won’t be reporting my 2014 income as the full “item price” which includes the new “author fee.” I’ll just be reporting what I always have, my yearly total of PayPal deposits from Envato. Is everyone doing the same thing?

As for 2015, I’m not sure if it’s been settled…will the new policy be implemented in tax year 2015? I read at some point that it was on hold while everything is investigated further.

Considering how the new policy might affect the my tax bracket, I’m thinking about leaving AJ. But that’s only because I’m not sure how the “author fee” will be deductible as an expense. Is it really possible that a large amount of “income” we don’t actually receive can be deducted as “negative income” and/or an expense?

Argh, I wish I could gain some clarity on this. I love AJ, the community especially. I don’t want to leave, but I feel like there is something off about this new policy.

Thanks in advance for any advice!

The last thing I heard on the US reporting was that they had originally intended to start tracking in 2015, but had delayed it until some unspecified date because they needed to more fully research the ramifications. Unfortunately VAT concerns drowned out the US concerns at that point (understandably), but I’m still waiting on pins and needles for some news on the US part of things. I would hope that at least it would be delayed until 2016.

I’m not really sure about deducting the so-called “Author Fee” either, and I’m especially concerned as a non-exclusive author that it will be an awful lot to deduct as a percentage of the reported price. Envato has promised documents to back these things but as far as I know they haven’t made the format public. So yeah, there’s a lot of nervousness there. I can’t say that I’m going to leave AudioJungle fully, but I’m in the process of removing items from my exclusive account and two others (these were from a long time ago and aren’t really performing anyway), and am talking with my collaborator on another one to decide whether to call it quits there as well. My main account I’m going to leave open for now, though.

Like you, for 2014 I plan on reporting the total dollar amount that Envato paid me, as I have every year since 2009, and do for every other marketplace I’m selling songs with.

1013 posts Go Acoustic!
  • Has sold $125,000+ on Envato Market
  • Elite Author: Sold more than $75,000 on Envato Market
  • Made it to the Authors' Hall of Fame
  • Had an item featured on Envato Market
+5 more
jhunger
says

I’m curious Joel, is your day job related to music at all? Sorry if that’s prying. Don’t have to answer :)

No worries – it’s not prying :) No, I’m a software engineer, or at least people keep paying me to be one :)

1013 posts Go Acoustic!
  • Has sold $125,000+ on Envato Market
  • Elite Author: Sold more than $75,000 on Envato Market
  • Made it to the Authors' Hall of Fame
  • Had an item featured on Envato Market
+5 more
jhunger
says

Since I am just starting in this business, I am very new to how the taxes work. My wife is also starting her own online business and we both have spent more money on starting up our businesses last year than we received in actual earnings. So, doesn’t that actually lesson our tax burden and help lower our taxes? If everything goes to plan, this year we will actually be making more than we spend.

Yep, everything you can legally write off will lessen the tax burden, and I think there’s some expectation that especially start up businesses will spend more than they bring in during some tax years. Just make sure you’re profitable 3 out of 5 years or else the IRS may become interested in you :).

1013 posts Go Acoustic!
  • Has sold $125,000+ on Envato Market
  • Elite Author: Sold more than $75,000 on Envato Market
  • Made it to the Authors' Hall of Fame
  • Had an item featured on Envato Market
+5 more
jhunger
says

So difficult)Do you like this system?

That made me laugh :)! I don’t think I have ever heard anybody at least in the U.S. say, “I love taxes! I can’t wait until April so I can pay more!”

That said, the quality of my daily life is directly impacted by things like food safety, public security, well maintained roads, utilities, etc. etc. etc. Although there are certain things I’d prefer my state and federal government would spend less or more on, and it’s not perfect by any means, overall it’s a pretty good deal.

1013 posts Go Acoustic!
  • Has sold $125,000+ on Envato Market
  • Elite Author: Sold more than $75,000 on Envato Market
  • Made it to the Authors' Hall of Fame
  • Had an item featured on Envato Market
+5 more
jhunger
says

That depends on a huge number of variables, how you’re reporting, how much you’ve made, where you live, etc.

For myself, I have a day job as well as stock income, which puts me into a higher tax bracket than if I were doing stock income alone. I also live in Oregon, which tacks on 9% on top of the federal tax, and also in my district there is a metro tax which is another small percentage. If I lived down the street in Multnomah County, I would owe yet another local tax. There’s also property tax that I owe because I own a house, and these vary from district to district as well.

At the federal level there are other payroll taxes that I’m subject to for my day job, whereas there’s self employment tax for the income I report on Schedule C. However, I can write off certain things (equipment for my music business, mortgage interest for the house, any money I put in a 401(k) or traditional IRA, and so on).

At a pretty gross estimate, I would say that for my music income I’m paying around 35-40% in taxes. But again, that’s mainly because the income from my day job propels all my music earnings into a higher tax bracket. If my only income were stock music, I’d be paying far less of a percentage of it.

1013 posts Go Acoustic!
  • Has sold $125,000+ on Envato Market
  • Elite Author: Sold more than $75,000 on Envato Market
  • Made it to the Authors' Hall of Fame
  • Had an item featured on Envato Market
+5 more
jhunger
says

Yes. It’s an extremely bad idea to not pay taxes on your earnings in the US.

1013 posts Go Acoustic!
  • Has sold $125,000+ on Envato Market
  • Elite Author: Sold more than $75,000 on Envato Market
  • Made it to the Authors' Hall of Fame
  • Had an item featured on Envato Market
+5 more
jhunger
says



If I don’t register my tracks with AdRev, ultimately someone else will – in their name.
To deal with this I’ve uploaded my tracks to my own YouTube channel so I would know if somebody else register them in a Content ID system :)

So you mean wait until a copyright claim appears on your videos? If so, yes that could work I suppose. But still a lot of hassle and then you have all the long winded red tape to go through to get it removed, etc.. All to appease a handful of entitled customers. I’ll take the hit thanks.

If anyone is interested in the exact hassle, here is an example taken from an actual experience:

1. Paying Customer contacts you that his YouTube video got flagged with a copyright notice indicating your song.
2. Through a series of emails the customer sends you some extended information. “[Some Song Title You’ve Never Heard Of]” sound recording administered by [some music distributor].
3. You let Paying Customer know that you’re on it (even though you have no freaking idea of what to do at this point) and that you’ll keep him informed.
4. You track down the song, and find that somebody has taken your track, sung some lyrics over it, renamed it, and submitted it to [some music distributor].
5. So, you track down the people who posted it (if you’re lucky) and send them a note to ask to remove the song. OR, you just go straight to step 6.
6. You create a DMCA notice, make sure you’ve got all the legal text exactly correct.
7. You look up [some music distributor]’s site, figure out who to send it to, and send it along.
8. If you’re lucky and there are no challenges, within a few weeks you’ll get the song removed. Problem solved! Until the next time it happens.

Note that until step 8, the parties that preempted your track are making money off of your song being used in YouTube videos created by your paying customers. Also note that steps 1-8 can span far more than than 24-96 hours.

Just trying to reiterate here that although I absolutely respect and understand authors who are declaring that their tracks are AdRev free, there are no guarantees at all that their customers will never get a 3rd party copyright notice. It just means that when it happens it will be far more difficult on both the author and the customer to deal with.

Fortunately for me, the three times this has happened to me (I may be currently experiencing a fourth, BTW – I’m waiting to hear back from a customer whether it’s my non-AdRev submitted song that’s causing his notice), the parties who pre-empted my songs didn’t know they were doing anything wrong and were generally cooperative. I only needed to actually submit a DMCA once.

In any case, this is just too much hassle. I know it seems like we’re beating a dead horse with all these AdRev threads lately, but I am grateful for all the discussions on this difficult issue – I feel like it’s slowly guiding me to making a decision one way or another.

1013 posts Go Acoustic!
  • Has sold $125,000+ on Envato Market
  • Elite Author: Sold more than $75,000 on Envato Market
  • Made it to the Authors' Hall of Fame
  • Had an item featured on Envato Market
+5 more
jhunger
says

Hey Paul,

Sorry, but it still looks broken. This is an https URL – is it possible you’re only seeing it because you’re logged into dropbox or the share is only visible to you? You could try PhotoBucket if dropbox isn’t working out.

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