I’m a tax accountant by day… so can we just have a little blogger heart to heart here and discuss your taxes?

According to the Internal Revenue Code, all income is taxable unless it is specifically exempted.  This means that technically, if you pick up a random twenty in the grocery store parking lot you need to report that as income on your tax return.  And of course any money you receive from your blog is certainly includible as well.

But, there are two different ways you can classify your blogging income that will affect the rest of your taxes.  You can report your earnings as coming from either a hobby or a business.  Do you know which your blog is for tax purposes?

WHY DOES IT MATTER?

If your blog is classified as a business, you can deduct the expenses you incurred (web hosting, camera equipment, possibly even a part of your home’s utilities) against your income to lower your tax bill.  And isn’t that what everyone wants?  A lower tax bill.

If your blog is classified as a hobby according to the IRS, you also can deduct ordinary and necessary hobby expenses, BUT are limited and can only be taken up to the amount you made in hobby income.  In other words, you can take more deductions as a business than as a hobby.

SO IS YOUR BLOG A HOBBY OR BUSINESS?

These are the considerations of the IRS in determining whether or not you operate a business or a hobby.

• Does the time and effort put into your blog indicate an intention to make a profit?
• Do you depend on income from the activity?
• If there are losses, are they due to circumstances beyond your control or did they occur in the ‘start-up phase’ of your blog?
• Have you changed methods of operation to improve profitability?
• Do you (or people advising you) have the knowledge needed to carry on the activity as a successful business?
• Have you made a profit in similar activities in the past?
• Does the activity make a profit in some years?
• Can the taxpayer expect to make a profit in the future from the appreciation of assets used in the activity?
• If you’ve made a profit during at least 3 of the last 5 years (including the current year), the IRS assumes your blog is a business.  

Ok, so you’ve read through the list, some of the points describe you, but some don’t.  Now what?  How will you determine what to classify your blogging activity as?

There is one ultimate question that it all boils down to in the eyes of the IRS…

Are you trying to make a profit?

If the answer to that question is yes (and a true yes that can be supported) then your blog can be classified as a business.  It doesn’t matter if you’ve had losses for its entire existence.  As long as you are running your blog in such a way that your goal is to be profitable, you can classify your blog as a business.

That’s good news, isn’t it?  I’m very excited to be reporting Mrs. Fancee blog earnings as business income this year and to be deducting my expenses fully.  I’m looking forward to the year when I do have a profit to report, but for now I’m just glad to have a few extra deductions on my 1040.

Have you been filing your blog income as hobby or business income?  The tax accountant in me would love to know!  Also, is this interesting and helpful?  Because I would consider doing a few more tax posts with tips for bloggers.  Let me know what you think

The post Tax Tips | Is my blog a Business or Hobby? appeared first on Naomi Bjerk.

Tania from Run to Radiance graciously agreed to start off the series and I couldn’t think of anyone more perfect!  She has been blogging for several years now and through dedication, consistency, hard work, and a great deal of artistic talent, has seen her blog grow into an esteemed voice in the DIY/Lifestyle niche.

I’ve been following Tania on bloglovin’ for the past year or so now and was originally sucked in by her and her husbands awe-worthy home renovation.  Recently she has been making a concerted effort to treat her blog as a business and has even partnered with Home Depot on their first DIY blogger challenge.

Enough of me, let’s here from the lovely lady herself…

What is your blog story?

I’ve always loved to write and have kept a journal since I can remember. I think my earliest entries are around age seven. As you can imagine, they are not very exciting—but the drama picks up nicely around age 13 or so.

When Scott and I got married, we both had a passion for home renovation, real estate and interior design. We moved into our current house 2 ½ years ago knowing it’d be a total gut job so it seemed natural to start to share about our projects online for friends, family and random strangers to see.

What’s on your daily/weekly blog to-do list?

As someone who works full time (I’m a copywriter IRL) with a two-hour a day commute (blah!) it’s a struggle to fit in everything during the week. So I have learned to do my projects and photograph them during the weekends when the lighting is good and then I can write the actual posts during the week.

I also keep up with social media and emails for my blog. I’m starting to get a fair amount of emails from companies wanting to create posts together which is great, but maintaining the relationship and keeping the client happy is important and time consuming.

Was there a ‘turn-pointing’ or key moment in your blog’s growth?

I blogged faithfully for two years before I saw a turning point. I had a super random post that happened to go viral on Pinterest. When people came to my blog from that pin a lot of them took a look around at other content, liked what they saw and stayed. My page views more than doubled in a single week and have risen steadily ever since.

I think the important thing to note is that without all the years of posts and working hard for good content even when it felt like no one was reading, my viral pin would have peaked traffic for a day and died down. It’s important to produce great content consistently so that when your “viral” moment comes people have something to stick around for.

Work hard now and expect to see the fruits of your work 6 months or so down the line. Remember the duel audiences you are writing for—the current reader and the future one.

When did you decide to monetize your blog?

I went to the Haven conference in Atlanta last summer. After going to a lot of business classes and getting to talk to some amazing bloggers I respect and admire, I made the decision that I was ready.

I personally didn’t want to introduce monetization until I felt like I had built up enough content to be worth it. That took me two years. I still have more work to do in that area and I’m still learning a lot, but I think I’ve worked hard to lay a good groundwork for success in the future.

What is your least favorite part of blogging?

Web design and HTML stuff. I hired out all of that. My dad taught me it’s better to focus on your strengths than try to fix your weaknesses. I believe my strengths are in writing and photography and creating projects, so I focus on that as much as I can.

How do you use social media to build your blog?

I think you have to focus on what you enjoy. I love having a conversation with people, so Facebook is fun although the new algorithms do make it tricky to connect with people. I am a HUGE instagram fan (you can find me here) because I love photography. Instagram is definitely my favorite. I also am an avid Pinterest user. Twitter and G+ are not as natural for me, so I don’t spend as much time there.

Social media used to be a big time suck for me, but now I’ve realized my time is better spent building blog content and responding to readers comments. If someone leaves me a comment, I want to make sure to visit their blog and comment there as well. I hope I can always keep that up, it’s important to me!

What design trends are you loving lately?

White walls! I know they have been in for awhile, but I am just loving them. It’s a bright, crisp color that makes me happy. I also am loving watercolor and the “less is more” trend right now—I am actively working on decluttering and getting rid of stuff I don’t need or love.

What design trends are you totally over?

Chevron. I’ve been over it for awhile. I actually had a giant chevron wall in our entry way for almost a year and got so sick of it. I also am not a huge granite countertop or stainless steel appliances fan, although we do have stainless steel in part of our kitchen for resale purposes one day. )

What are your tips for newer bloggers looking to build their blog?

Hang in there! The first year I had to force myself to blog. I had no comments, very few readers and was making $0. But I kept reminding myself I was doing it because I loved it and because I was building a base for a successful future.

When you feel like you’re ready, don’t be afraid to reach out to companies and ask for a partnership. The worst they will do is tell you no, and even the most famous bloggers out there hear that word still. Keep going!

The post Building a Blog | An Interview with Tania appeared first on Naomi Bjerk.

Yes, this is what I think about in my spare time… #I’mablognerd #don’tmakefun

CONTENT: CREATION

This is why we all started blogging in the first place, to share our rockstar DIY skills (or whatever it is you blog about) with the great wide world of web.  Created content is a post where you are giving value to the reader through something you’ve made or originated.  This could be in the form of useful tips, a tutorial, pics of your latest project, whatever!  But the key is it belongs and came from you.

Created content is what makes your blog different, it sets it apart from other blogs because no one else would have thought to share that story the way you did, or sew the drapes in that style, or make such cute ladybug cupcakes.  It establishes your voice, your credibility, and your value to readers.

CONTENT: CURATION

Curated content is what you share that originated from someone other than yourself.  It could be helpful links, a pinterest board, favorite living room layout pics.  Anything you post on your blog that you didn’t make or think up yourself is curated.

I love this word because I always picture a museum curator.  Someone who carefully sifts through many many things in search of only the very best for his collection.  That’s what you do when you share other’s content on your blog.  You’ve curated what you deem worthy of notifying the world of.

FINDING BALANCE

Some bloggers only create content, others only curate it, and that is fine.  But I believe that for the majority of bloggers to find success, a careful balance is needed.  If I had to choose only one type of content to offer, I would choose created without a second thought.  That is why I’m here, to share with people my unique thoughts and creations.

But, here’s the thing about content creation… I’m a finite person, we all are.  And I can only create so much quality content.  That means that if I want to continue posting and sharing on a continued basis, I need to share curated content.

Plus, this blogging world is a social business by nature.  If we all only posted our own content no one would ever find out about awesome new ideas and meet other bloggers.

So two great reasons you should be posting curated content on your blog in addition to your created content: it allows you to share beyond your creative limits, and it engages with other bloggers and builds community.

I’ve started a weekly column called Loving Lately where I share links from around the web that I find interesting and worth checking out.  I’d love to hear your views on the curation vs. creation dichotomy.  Any tips on how to find your own balance between the two?

Linking up at: Work it Wednesday, Hit Me With Your Best Shot, The Inspiration Gallery, Handmade Hangout, Tutorials & Tips

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