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Monday, April 19, 2010

Tax Implications of Blogging

I came across a blog post discussing the tax implications of food blogging.  Well of course I was interested enough to read it since one of my blogs is a food blog.  The post was from an American perspective.  I honestly had to laugh to think that the raw ingredients, travel to and from restaurants to take pictures of food, and similar expenses could be written off against any income a blog has.  This may be true for established food magazines and other related food businesses but for the average food blogger who blogs for a hobby it isn't.  On the other hand I recall a year or so ago reading how someone in New York was denied unemployment benefits because they earned a few dollars from Adsense.  So when it comes to tax and financial implications of blogging, it is always advisable to do a bit of research as it applies to you where you live.


I live in Ontario, Canada.  In essence there are no tax implication of blogging for non-business related blogs.  A non-business (personal) blog is a blog that is not part of an existing business.   Blogging is considered as a hobby much the same as making crafts or selling a few extra vegetables at a roadside stand.  For example many crafters will rent a table at craft fairs to sell their crafts.  The proceeds cover the immediate expenses with enough left over to buy more craft supplies but there is no annual net gain but rather a loss.  Hobby losses cannot be used against other income and time spent doing the craft has no monetary value so cannot be factored in either.  If my blogs' income reaches a point where there is a net income, something that is very difficult to do with many hobbies and even more so with blogging, then it would be declarable income.  However, since I do not have another income and the personal tax exemption is $8881 meaning I would have to make a net income over that amount before paying tax.  Trust me if I ever get to the point of making that much net income from my blogs you and everyone else is going to hear about it!


Garden Gnome
©2009-2010

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