I received a comment earlier on my blog asking about tax write offs. Legally I can’t give any advice about write offs, all I can give is an account of what I write off on my blogs.
1. Anything that’s related to my blog. This year I’m writing off a projector, a digital camera, and the cost of buying domains. Also I should add that hosting is a definate writeoff.
2. You can’t write off money you don’t earn with your blog. If you only earn $30 with your blog you can write off $40 worth of stuff.
3. One of the best reasons to go into business for yourself? Write offs. What’s better than getting stuff “30%” off. I mean 30% off because you aren’t paying tax on the income used to buy whatever it was for your business. The key is making it business related.
According to Spark Plugging.com:
“Here are the IRS qualifications of blogging as a business vs. a hobby:
- You carry on the activity in a business-like manner,
- The time and effort you put into the activity indicate you intend to make it profitable,
- You depend on income from the activity for your livelihood,
- Your losses are due to circumstances beyond your control (or are normal in the start-up phase of your type of business),
- You change your methods of operation in an attempt to improve profitability,
- You, or your advisors, have the knowledge needed to carry on the activity as a successful business,
- You were successful in making a profit in similar activities in the past,
- The activity makes a profit in some years, and the amount of profit it makes, and
- You can expect to make a future profit from the appreciation of the assets used in the activity.”
As Spark Plugging writes, your blogging activity needs to be profitable.