Income Tax Deductions for Blog Owners
By Marc on Apr 24, 2008 in Video Posts
Although we have already entered into the second quarter of the fiscal year, it’s never too late to start planning ahead. I took a few accounting classes in college and I have a basic understanding of the tax code and the deductions you can take for running a sole proprietorship. An experience I never had was seeing these deductions in action. My earnings for this past year were $35,803. I only paid $1,683 in taxes. I do have the advantage of having my Dad being a CPA and getting the maximum amount of deductions I could, however it was still a real eye opener.
This led me to start thinking about all the deductions I’ve been missing though owning this blog. I made up a shot video to address this subject, with a list of deductions I can think of below. Enjoy
Monthly Hosting fees - $7.95/month
I use HostGator
Domain Name Registration - $9.95 per domain
I use www.GoDaddy.com
Internet Access Fees - $55.00/month
Office Supplies - $17.00 so far
Web Cam - $105.00
Advertising - text and banner ads
Computers, Cords, Mice
Lawyers Accountants, Tax Preparers/Software
So over a year I have:
Fixed costs of $755.00
Variable costs of $122.00
Total costs $877.00
Tax Rate 20%
Est. tax savings by taking deductions $175.00
That will buy a lot of advertising.
Have a good night.
Marc
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8 Comment(s)
By Joe on Apr 24, 2008 | Reply
Not bad advice, Marc. John Chow recently did a post on something like this too. I’m still hesitant to write off anything I do for my blogs… though as my network starts to get bigger, I will consider it. I recently just got a Flip Cam… gonna make some video posts to haha. Keep up the hard work!
By Bill Gere on Apr 26, 2008 | Reply
Hi Marc,
I thought you made some pretty good points above. My only other recommendation is that if you are going to itemize your deductions, it may be worth hiring a professional tax accountant because they will be more familiar with what are allowable deductions, as well as how much can be deducted for many of the items you mentioned above and they may even know some other deductions that somebody who is not a professional could potentially overlook.
On an unrelated note, I emailed you to tell you that your WordPress Dream Theme link is bringing up a 404 page, but I don’t know if you received my email. What is the best way to contact you? Should I have used the contact form on the site? I just emailed admin at onemansgoal dot com.
By Jack on Apr 26, 2008 | Reply
Marc,
Great post. I think in addition to the deductions you’ve mentioned, the fact that most blogs will never make $877.00 is also something people should consider.
I hope yours makes ten times that, and more.
By Nashville SEO Zombie on Apr 28, 2008 | Reply
Good post Mark
As my blog network grows, and I turn this into serious cash, I’ll need to look into things like this.
Hopefully I’ll be making enough money to by tax time next year =)
By Mark Venardi on May 2, 2008 | Reply
I’m surprised you didn’t do a “Home Office Deduction”. You can deduct the cost of your “office area” from either your mortgage or rent.
By Marc on May 2, 2008 | Reply
By One Year Millionaire on May 8, 2008 | Reply
Thanks for sharing this information… I am trying to think of all my blog/home business expenses…
By Martin Tips on May 14, 2008 | Reply
Just found your site by accident doing a search for something completely unrelated. Looks like you have some good stuff here! Added your RSS feed to my rss reader, looking forward to reading more.