This column is brought to us by Sharon from Mom on a Dealz. Madame Deals Inc. uses her husband as our business and personal accountant and gives him 5 stars. He is available for questions and was a pleasure to work with!
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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 firstname.lastname@example.org with the subject line “Ask an Accountant”. See previous questions and answers HERE
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?
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.