Can bloggers, Instagrammers, and influencers deduct travel bills?
- Thinking of starting a travel blog to record vacation for all your families? Think again. The IRS lists the key elements that represent whether your blog is a business or a hobby.
- Business spoilage, in addition to travel, should also be considered “common and essential” in order to qualify. Most travel costs come in black.
- Some of the content you use for your site can be considered as a business no matter how profitable it may be. Examples include your name, reservation, page layout, and other useful tools. If you do not know what to expect, you should ask a tax professional for help.
- Go to the Business Insider landing page for more information.
While “free travel” may seem like a dream to many of us, the online marketing team has found the ability to turn travel into business finance.
We’re talking about travel bloggers, yes – the term used to describe website owners who write about their destination, hotels, credit card travel, and other traffickers to make a profit. Developers in this way have somehow learned how to turn their passion for travel into a career, and earn real money along the way.
Unfortunately, not everyone can afford to travel, even if they are a travel blogger, says Eric Nisall, founder of AccountLancer. Nisall says customers come to him all the time and I believe they can pull out a visit page and immediately start posting all their trips to business, but they often make mistakes.
Like anything related to taxation, the reality of travel is far more complex than most people realize. What you can and cannot write is also defined by Internal Revenue (IRS).
Is your visiting blog a business, or a fun one?
According to Nisall, the main thing that determines if you can sign up for travel expenses is that what you do is working as a business or entertainment – no matter how you expect it to work in the future. The IRS writes a list of guidelines on their page to help you determine where you stand.
Nisall says what works on travel blogs are as follows:
- Whether you do the business or not and keep books and records complete and accurate
- No matter how much time and effort you put into showing that you want to succeed
- Whether you rely on your income for the necessities of life
- Whether your losses are the result of things you can’t control (or they happen at the start of your business)
- Whether or not the project makes a profit over the years and the profits it makes
Looking at this list, it is easy to see where people might have a problem right away – especially with time, financial dependence, and profitability. This is because so many people start blogging as a “side gig,” meaning that all the time involved and relying on money is not fulfilled, says Nisall.
While travel bloggers make money online looking easy, it can’t be beyond reality. Profitable blogging can be tricky; it takes more than beautiful bikini pictures or family vacation photos to make real money with the great techniques that bloggers use (affiliate marketing, advertising, PPC advertising, and more) Whether you like it or not, most bloggers should not expect making any money for the first six or twelve months. After all, they can make a little more or less – but it can take years to figure out.
Not everyone who owns a travel blog wants to follow this, but it does not change their status. Nisall says, of course, you can still expect to get rid of clutter right away, plus the cost of setting up a website, to make it workable, and to make it more efficient.
However, “don’t try to spend tens of thousands of dollars on travel and equipment at once,” he says. If so, do not be surprised if you are being investigated by the IRS.
How much money do you spend on business?
When it comes to blogging, another important factor to consider is the IRS’s commitment to business marketing to be “commonplace and essential.” According to the IRS, ordinary money is the “most common and legitimate source of income for your business or business,” while capital money is “useful and appropriate for the sale or business of your business.”
Also note that, according to the IRS, “money does not have to be necessary to be considered essential.”
This is a controversial issue in the world of travel writers, especially since there are so many types of places. You need to get somewhere to do your job, but there are many ways to do this that are probably not uncommon.
For example, it may be unusual and necessary to reserve a flight from New Jersey to Orlando to list Disney World on your travel blog, but is it necessary to “first fly for less than three hours? Probably not,” says Nisall. family price, booking accommodation at the cheapest hotel you can find is not “common” because it does not fit your preferences.
What about weapons and equipment?
Unless you have met the criteria that make your blog a “business” and not a “habit,” you should write portions of your visits related to your business. Nisall states that if 60% of every private trip was spent on business-related activities and 40% of your travels were personal, you can expect a 60% discount on your expenses.
But, things get even more complicated when we talk about cutting down on business tools and goods on your taxes as a travel blogger. Obviously, you have to pay for other things, such as goods or camera equipment to complete your work, but can those items be used to sell a business?
“For some people the answer may be yes, because they only take pictures when they travel or earn money,” says Nisall. “But if you’re using everything in combination, you have to make sure you take part in it as a function.”
A good example is the camera you buy to take pictures and videos on your landing page and TV accounts. If you also use the same camera to take family photos and take pictures of your children at their own events, then it is not a waste of the whole business. If you buy a second camera especially for travel, then you can record the full cost of the camera instead of the money you make.
Nisall says food is another popular form of travel that is often as useless as a business. You have to eat, but not everything you eat is about your journey – even if you are in the middle of a work-related trip.
“Just because you name a place like interest doesn’t mean your food will ruin the business,” Nisall said. You can take part of your money as travel expenses, but you must be honest when you are honest. “
When it comes to clothing and accessories, Nisall says these items cannot be disposed of as a business.
“It doesn’t matter if you have to be ready to survive an igloo in Alaska for a week or two full days in the heat of the Sahara desert,” says Nisall. “Clothes, sunglasses, goggles, coatings or anything else are not the starting point, but heating and cooling equipment, locks, grocery stores, and so on are acceptable.”
Writing for travel expenses is not as easy as you might think
If you are looking forward to starting a travel blog to record your family vacation, IRS guidelines you may feel are lacking. Unfortunately, saving big on travel trips is not as easy as some might get you to believe – and some may not.
The point is, all the principles we have discussed here are “rules,” but they do not mean that everyone should abide by them. Some people are not comfortable with IRS requirements, which is why they choose to discount everything regardless of guidelines. Some are very careless, so it only takes a few steps as a business discount.
It all comes down to one thing: Are you willing to protect and manage all the money you spend compared to what you earn (if you have one) when you audit?
As with any other tax matter, you should consult an expert on tax matters if you are unsure of your position. But, if you think that all the travel expenses were a good game once you start a travel blog, be prepared to be disappointed. You could list some of your purchases, but not all of them – especially if your budget is low or non-existent.
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