Ask An Accountant: Blogging – A Hobby or Bussiness?

Each week Momondealz brings us a post about taxes and other accounting issues. This information is priceless. Check back each week for new helpful tips and advice. See previous accounting posts here. Feel free to email at the address below if you have a question you would like answered in this weekly feature.

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Although tax season is over, tax questions arise year round. My husband is an experienced accountant and will be answering questions sent to me 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

Thank you MomonDealz!

About Heather Brummett

I am Heather Brummett , the owner of Living on Love and Cents, a Christian, wife and mom of 2 sharing real life experiences. I'm a Texan who loves to talk and laugh. I offer social media management, consultations, guest writing, and guest speaking. To be featured or for information on freelance work contact me at livingonloveandcents@gmail.com.

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