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:

1. You carry on the activity in a business-like manner,
2. The time and effort you put into the activity indicate you intend to make it profitable,
3. You depend on income from the activity for your livelihood,
4. Your losses are due to circumstances beyond your control (or are normal in the start-up phase of your type of business),
5. You change your methods of operation in an attempt to improve profitability,
6. You, or your advisors, have the knowledge needed to carry on the activity as a successful business,
7. You were successful in making a profit in similar activities in the past,
8. The activity makes a profit in some years, and the amount of profit it makes, and
9. 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.

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