What I meant by my use of "salary" is the cost of labor to create the goods sold. From your own link, the irs.gov page, chapter 6 ( Chapter before gross profit ):
Mind you, the 'do not include any amounts paid to yourself' would refer to the owner... one could still pay a builder to work and consider that cost of labor. Sorry to be unclear before.
Alistair:
A product is never a service, and a service is not a product. With downloadable software, you are purchasing the actual software, AKA the product. With a mud, you are provided with a service... the ability to link to the owner's software and use it through their system. This is the same with an html site, mud, server, phone system, etc.
I agree with what you say, Alistair, but I wanted to make it more clear.
|