As this blog continues to grow in terms of traffic and income, it would be prudent to consider it as a separate personal business for taxation purposes. What advantages does this give a blogger? For one thing, it gives me a bunch of tax deductions that I can claim come the end of April (or later since it’s a business)! Some of these include:
- Computer (% for business use, claim depreciation)
- Internet connection (% for business use)
- Office space (% of mortgage interest/tax/insurance and utilities)
- Office supplies related to the business
- Domain costs
- Web hosting costs
- Advertising costs
- Even travel (if it’s for the business)
I can see this being a modest tax advantage in the first or second year of business where the blog expenses claimed will most likely exceed the income produced. As it is a personal business, the excess tax deductions can go against personal income.
Experienced bloggers out there, any tax tips for a semi-new blogger like me?If you would like to read more articles like this, you can sign up for my free weekly money tips newsletter below (we will never spam you).