Ask an Accountant

0 Flares Twitter 0 Facebook 0 Pin It Share 0 Google+ 0 Reddit 0 StumbleUpon 0 Email 0 0 Flares ×

Although tax season is over, tax questions arise year round.  Mr. Mom on Dealz is an experienced accountant and will be answering questions sent to him at cjwtaxpro@gmail.com with the subject line “Ask an Accountant”.

Question:

When should a blogger start considering themselves a business for tax purposes? Is there certain criteria that, once hit, a blogger must start to consider their blog a business instead of a hobby?

Answer:

The blog is considered a business when there becomes a profit motive. Either way, business or hobby, the income needs to be reported. With this in mind, the hobby expenses are limited to the hobby income, meaning you can never take a hobby “loss”. A business can show a loss that may offset other income sources based on the way the business is structured.

*Please keep in mind this post is for informational purposes only and answers given are very general. Do not rely on this column for definite tax answers as many things depend on individual circumstances. Please contact your personal accountant or financial advisor for your particular situation.

photo credit: austinpost.org
Share on Facebook0Pin on Pinterest0Share on Google+0Tweet about this on Twitter0Share on StumbleUpon0Share on Reddit0Email this to someone
0 Flares Twitter 0 Facebook 0 Pin It Share 0 Google+ 0 Reddit 0 StumbleUpon 0 Email 0 0 Flares ×

Google+ Comments

About the author: I’m a 30-something mom to three, brand ambassador. content creator, social media maven, blogger extraordinaire, earth lover, butcher, baker, candlestick maker (or something along those lines) – love word games, crafting, cake decorating or shooting pictures.

1 comment… add one

  • Thanks for sharing. I’ve wondered about this. I had trouble finding info through a Google search.

    Reply

Leave a Comment