7 February 2008 - 22:35Income Tax Deductions for Blog Owners.

John chow writes an excellent post on his blog about the advantages of being able to use his blog’s income to deduct expenses such as his love for fine dining.

Here is an extract from the post:

“Because the blog is treated like a business, you can deduct from the blog income many business related expenses that are required to run the blog. Stuff like web hosting, design work, programming, cost of domain renewal are all deductible. There are many other deductions one can take to bring his income down. There are no set rules. The tax man’s only rule is the expense must be reasonable and used for the purpose of getting business.

The keyword here is reasonable. It’s an undefined term. What maybe reasonable to me maybe completely unreasonable to Uncle Sam. My rule when dealing with deductions is to claim everything because the worst thing that can happen is the deduction is disallowed. If they disallow it, then fine. However, if they accept it, then I’ve saved yourself some money. Here are some of the more creative deductions one can use when trying to reduce blog income taxes.”

John goes on to say that it is possible to coincide vacations with trade fairs and shows to get a break that is deductible from your income tax. One of the great things about owning your own businesses, is the tax benefits and flexibility you get.