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Old 06-14-2013, 03:57 PM   #1
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Default Tax Write Offs?

Hey there.

So a friend of mine like to travel a lot and he started a travel blog and he is able to write off a lot of his expenses because of it. I'm just curious, does anyone have any insight into how this works and could I create a homebrew blog so I can write off some of my equipment?


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Old 06-14-2013, 04:12 PM   #2
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Being an accountant I would be pretty hesitant to do that. In an audit, you're going to have to prove to the IRS that it is a legitimate, for-profit, business. Creating a blog to write off a hobby is not a legitimate business IMHO.


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Old 06-14-2013, 04:16 PM   #3
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You can only write it off expenses for a blog if that blog generates taxible income, and then you can only deduct against the income that blog generates. Even then, you have to have enough expenses for that blog that it is larger than the standard deduction.

If your buddy didn't meet that criteria, he's a candidate for an audit.

So, if you have a blog about homebrewing that makes you taxible income, you can deduct your equipment against that blog income. You can't, however, just write a blog then take a deduction against your personal income tax from your day job.

It's all kinda common sense - you can only write off activities that are expenses directly related to the generation of income.

So, unless you are going to get paid an appreciable amount of money for this homebrewing blog, then the answer is NO!
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Old 06-14-2013, 04:20 PM   #4
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Originally Posted by TopherM View Post
You can only write it off expenses for a blog if that blog generates taxible income, and then you can only deduct against the income that blog generates. Even then, you have to have enough expenses that it is larger than the standard deduction.
This is wrong on so many levels...lol
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Old 06-14-2013, 04:29 PM   #5
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Quote:
This is wrong on so many levels...lol
???? I'm not an accountant, but I am a small business owner and landlord who does my own accounting and taxes, so I have a pretty good grasp on how it works.

Can you please tell me what's wrong with my analysis?
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Old 06-14-2013, 04:32 PM   #6
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Originally Posted by HoppyDaze View Post
This is wrong on so many levels...lol
I'm pretty sure he is spot on.
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Old 06-14-2013, 04:33 PM   #7
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To write off hobby expenses, you need income. To generate income via homebrewing is violating the law.
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Old 06-14-2013, 04:34 PM   #8
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Originally Posted by HoppyDaze View Post
This is wrong on so many levels...lol
"Wrong" as in, "I agree that this is the situation, however, in an ideal world, it would be different",

or

"wrong" as in, "you're an idiot who has screwed up the basic facts."
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Old 06-14-2013, 04:34 PM   #9
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If the blog is run as a business there is no limit to the amount of losses you can claim on your 1040. The expenses don't have to be larger than the standard deduction. Standard deduction and business losses are two separate things.

The whole thing boils down to if the IRS is going to think this is a hobby or a for-profit business. Section 183 deals with this issue and I would suggest reading it OP. http://www.irs.gov/Businesses/Small-...or-Profit-(ATG)
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Old 06-14-2013, 04:35 PM   #10
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Originally Posted by AZ_IPA View Post
To write off hobby expenses, you need income. To generate income via homebrewing is violating the law.
In theory, one could generate income from homebrewing by commercializing a blog or being a paid writer. Income wouldn't have to come from selling the actual beer.


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