I'm No Tax Consultant but.
My primary niche is fishing. Most of my affiliate relationships involve fishing in some way from hooks to boats. The cover image is the view of my testing ground taken from the porch of my cabin.
My tax guy happened to read my blog and asked me how I decide what to write. I told him that I spend the summer fishing. At some point, I write about equipment that has impressed me or techniques I discover while using the equipment. He asked if any equipment companies sponsor me. They do not. I buy equipment to go fishing. Sometimes I write about it. He asked if I was taking deductions for the fishing trips. Although I do for a portion of my home office and related expenses, I have not for the actual fishing.
I certainly don't want to go into a great deal of detail about his advice, but he informed me that, if I can legitimately connect the purchase of equipment with my blog and demonstrate that my cabin makes sense as a place to test things, I could write off part of my travel, equipment and expenses.
Unfortunately, I was not able to get to my place last summer because of COVID. This summer, if I can, I am going to accumulate possible tax deductions as well as fish stories. We are going to go over everything prior to tax season to see what's possible. I wanted to share this because its something to think about as you "keep on fishin'"
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I agree with you Jim, and it is something that many overlook.
Legitimate expenses are tax deductible. Initaily I guess it can because we don't associate our activities as being a business or business related.
From observation it may be necessary to educate the people parparing tax returns if they are not switched on like your team.
Great share.
Alex
Some good points here.
I take note of everything that I spend that is related to my business.
In my country you only pay on actual profit. So all of it gets taken into consideration. Until I begin to clear expenses I won't need to pay taxes. If I was fishing and needed equipment or travel expense to do it that would be deducted before tax is calculated.
Candy Benn
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That's great news being able to use your passion as a tax deduction ... I'm currently putting our website together to sell outboard motor parts and various marine products online, it's a long process. We have a small marine shop in NB Canada called Romeo's Marine & Auto Body Ltd., my dad started in the auto body business in 1949 and in 1968 branched out in the marine business. My father is 91 gonna be 92 this year and comes to the shop every day to overlook everything and do some work, he even bought a 45 SeaRay last year, but never got to put it in the water because of all the crap that is going around, if you want to check out our shop we have a drone that shows our area on our website (started the website back in 2003) http://romeosmarine.com .. thank you for your post ... be well be safe stay healthy ... cheers ... Michel