Sunday, July 26, 2009

Business Blog

Now, there will be an accountant or tax knowledgeable person out there, so answer me this.

If I allow ads on my blog, that means it then becomes a money making blog, a business. I would then need to do the paperwork to make it into a business.

I will pay high tax on any profit (haha) as it my third source of income, but can't I offset any losses incurred in producing my blog against my tax payable, or is that only for shares and property?

What expenses? Well, I need to produce content. I need televisions, sound recording, travel, that is local, interstate and international. I need an office, computer equipment, heating, lighting.

Clearly I am going to make a big loss and with horrendous depreciation, offset against my taxable income.

So what am I missing?

Clearly I won't do this. My blog is for fun, not to make money from, but just curious.

11 comments:

  1. Andrew you could set your newly-expensive blog up up to make a loss and then profitably offset that against your tax liability and absolutely make a killing!

    Sorry, my knowledge of finance stops at The Producers.

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  2. The Producers was, of course, a Ph.D in fabulous finance.
    Brilliant idea HighRiser.

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  3. I'm not touching that one. I have enough trouble getting my head around the ABN and associated shit I have to do for my 'sole-trader' status as a freelance writer. Actually, I struggle enough with my income tax, so I'll leave it up to you. Valid point however.

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  4. Why does it make you a business, vs an individual with another source of income?

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  5. the worst thing about monetising your blog is the crap ads google puts up: based on keywords?

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  6. Lad, that is what I was asking. And why not I think. I will read on to the rest of the comments.

    MS, not seen The Producers, but get the idea.

    Eek Mutant. I will leave that to the experts.

    Indeed Daniel. But I don't know if expenses incurred in earning a second or third income can be offset against your total tax bill.

    Poet, I am really not keen on ads on personal blogs but then they don't work on me as I don't see them, like I rarely see tv ads. They just flow past me without me noticing. R has to draw my attention to amusing or new and interesting ads on tv.

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  7. As an exercise after reading this post, I checked how much I had in the ol' Ad Sense account.

    $2.70.

    Since about August last year.

    Hardly seems worth the effort! Seeing as it took nearly an hour of my time (at work), I believe I am entitled to about $23 + 9% super + contribution towards my annual & long service leave. Google really should have also provided me with half a cup of Bushells and a few dry discuit crumbs...

    Not bitter at all. But I did genuinely believe that the advertising traffic would have set me up for retirement at 29...

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  8. You'll be missing me. This blog takes years off my life loading as it is without putting ads on.

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  9. Lol Me. Do people have to click on the ads for you to earn a buck? I will click away in future......no, hang on I read it usually with google reader, so I don't see them.

    Jahteh, I am well aware it must be an issue for some people, but short of not posting photos, I am not sure what I could do. I will have a look tomorrow and see if can display the last five posts rather than the last ten? Reckon that might help?

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  10. oh Andrew I am so sorry you have never seen The Producers !
    "Mel Brooks' directorial debut.
    It's a masterpiece and perhaps the funniest film of the late 60's. Theatrical producer Max Bialystock finds out that with a bit of dishonesty the producer could actually make more money with a flop than he could with a hit. In order to make this scheme reality he teams up with his new friend accountant Leo Bloom (Gene Wilder) and starts to look for the worst play ever written.

    They end up choosing a musical "Springtime for Hitler" - written by a fanatic Nazi jerk Franz Liebkind(Kenneth Mars) who never takes off his WW2 helmet. Of course they also hire the worst and the most ungifted man they can find to direct the play, quite a personality Roger De Bris - a bloke who just seems to like wearing dresses. Naturally they find an old hippie Lorenzo Saint Dubois/Dick Shawn to play the part of Adolf Hitler. They are ready to vouch for the fact that the play is going to be as catastrophical as it possible can be.
    The lyrics of the opening number: Springtime for Hitler and Germany, Winter for Poland and France, Bombs falling from the skies again, Deutschland is on the rise again".

    Overall "The Producers" is a magnificent comedy, a masterpiece that just gets better every time you watch it."

    There was a remake in 2005.

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  11. MS, I only knew of the 2005 one and not the original. I know Springtime for Hitler of course.

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