So The Government Wants To Declare Blogging As A Business So They Can Tax Us – I Say Bring It On!
Who Would Have Thought? Rebelling Against Taxation By…. BLOGGING!!
The recent announcement that Philadelphia has become the first city to go after bloggers as a business so they can charge them taxes and business licensing fees did exactly sit well with many bloggers and news organizations, myself included.
But if that is the way it is going to be then I say it is time to start beating Uncle Sam at his own game.
While many bloggers have never actually ran their own business, I have and let me tell you this move by our out of control Government is really a blessing in disguise.
Let me explain.
First consider this snippet from the article on nolo.com explaining how you as a blogger will now be taxed.
Filing a Tax Return
The main difference between reporting income from your sole proprietorship and reporting wages from a job is that you must list your business’s profit or loss information on Schedule C (Profit or Loss from a Business), which you will submit to the IRS along with Form 1040.
You’ll be taxed on all profits of the business — that’s total income minus expenses — regardless of how much money you actually withdraw from the business. In other words, even if you leave money in the company’s bank account at the end of the year (for instance, to cover future expenses or expand the business), you must pay taxes on that money.
You can deduct your business expenses just like any other business. You are allowed to expense (deduct) much of the money you spend in pursuit of profit, including operating expenses, product and advertising costs, travel expenses, and some of the cost of business-related meals and entertainment. You can also write off certain start-up costs and the cost of business equipment and other assets you purchase for your business.
But you’ll need to keep accurate records for your business that are clearly separate from your personal expenses. One good approach is to keep separate checkbooks for your business and personal expenses — and pay for all of your business expenses out of the business checking account. For information about allowable expenses and deductions, see Small Business Tax Deductions and Top Tax Deductions for Your Small Business.
So now let me explain just what that means to my entrepreneurial business owning sole proprietor blogger friends.
That nice vacation you take to Vegas next year write a blog post about it and now it becomes business expense that you can write off on you taxes that you previously couldn’t.
That IPhone you just bought use it for your business and that now becomes a business expense as well.
The cost of your new computer that you will be using to write your next wonderful blog post is a new found tax write off that you couldn’t declare before. How wonderful!!
Your monthly internet bill – well you have to go on the internet to run your business so you can write that off as well.
The list goes on and on so if the Government wants to come after you for with some ridiculous new tax declaring that your a business greet them with a smile and say bring it on.
Play your cards right and keep good records and you can deduct so many business expenses that you can receive all of the taxes you pay into Uncle Sam from your regular job.
Thank you Philadelphia for spreading your brotherly love and showing us how to say good by to paying taxes for good.
Yes! You can join the over 1/3 of Americans who pay no income tax to the IRS. Many actually get paid by the IRS. Why not you?
Disclaimer: I am not a tax professional and this advise should not be construed as tax advice. You should consult with a certified tax professional who can better instruct you on how to use this new attempt by the Government to leech every dollar out your pocket against the IRS to LEGALLY offset your taxes!