Taxpayer asks:
While putting together a new group of guest posters for my site, a tax question hit me! Is the time I spend guest posting on other blogs for promotional purposes tax deductible? i.e. I don’t get paid for the post – my only compensation is the link back. But I could be getting paid for the post… so is the amount I charge for that service a marketing business expense?
If it is – I’m sure you have many readers that would be interested!
Thanks so much!
Taxgirl says:
Gosh, I sure wish it was – since I spend so much time writing for other publications and blogs – but it’s not. The IRS likes to match items of deduction with items of income. If they allowed a deduction for the cost of your time, then they’d require you to value the same for purposes of attributing income (the “value” of the article). But they don’t. Since there’s no income component, there’s no deduction.
Even though it feels odd, this is consistent with the IRS’ position on the treatment of services when there’s no compensation throughout the Tax Code. You can’t deduct your time for volunteering, even though it’s valuable, or time spent on services for which you didn’t get paid because you were “stiffed” by a client (hey tax geeks, most of my readers are cash based so no need to write in to tell me how this isn’t *quite* true for accrual based taxpayers).
I do have one piece of good news, though. Any out of pocket expenses related to the piece (i.e. money spent on paid art, research and the like) can be deducted as promotional expenses. So all is not lost!
Thanks for writing in – and good luck with the blog! Guest posting is a great way to promote your blog or services. I’m always happy to accept ideas for guest posts at taxgirl – just drop me a note!
Like any good lawyer, I need to add a disclaimer: Unfortunately, it is impossible to give comprehensive tax advice over the internet, no matter how well researched or written. Before relying on any information given on this site, contact a tax professional to discuss your particular situation.
Have a question? Ask the taxgirl! – Now on Facebook!
Taxpayer asks:
Dear taxgirl,
I am confused. I saw your post about amazon.com and sales tax in New York. I live in New York. Do I have to collect sales tax now for amazon? What about my other affiliate sites? Help! I think I am doing something wrong.
Taxgirl says:
The post that you’re referring to is here.
It is confusing – but that’s because the position that New York is taking is pretty groundbreaking. Basically, New York claims that any affiliates living in the state of New York are the equivalent of virtual “door to door” salespeople and thus, the parent company is subject to sales tax.
The good news is that you don’t have to do anything. If you are located in New York (and any other state that takes a similar position), this makes the parent company (Amazon.com, for example) responsible for collecting the sales tax. You will not be responsible for collecting sales tax on purchases made through an affiliate site.
The bad news is that some companies, like Overstock.com, have decided that makes the affiliate programs more trouble than they’re worth and have pulled the programs where they might be subject to tax.
I’m not sure what will come of the lawsuits filed by Amazon.com, Overstock.com and the like. One thing, however, is certain: access to the internet is changing our world. The very fact that I can order a tree from Oklahoma with the click of a mouse (I did this recently) changes the economic picture. This will certainly affect our tax structure.
My advice? Read all of those emails and flyers that you get in the mail (or email) from parent sites. They may contain important tax information or other changes in the way that your parent company conducts business with you as an affiliate. And if you have any questions about your reporting or other requirements, make sure to consult with your tax professional.
It’s a confusing time for a lot of folks – we’ll just have to wait and see what happens in New York!
Like any good lawyer, I need to add a disclaimer: Unfortunately, it is impossible to give comprehensive tax advice over the internet, no matter how well researched or written. Before relying on any information given on this site, contact a tax professional to discuss your particular situation.
Have a question? Ask the taxgirl!
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In consideration of the news that it’s costing us as much to promote and process the rebate checks as the combined Super Bowl advertising budget for the Patriots-Giants game, I’m launching a contest!
Your challenge is to promote the economic stimulus plan via print, podcast or video. You can be as serious or as cheeky as you want.
Depending on the number of entrants, there will be at least two winners – I may give out some special prizes, too.
The winners will have their entries posted on taxgirl.com and receive a taxgirl tee shirt!
Here’s how it works:
Entries must be sent via email with “Tax Rebate Super Bowl Commercial Contest” in the subject line to taxgirlmail@mac.com by 11:59pm EST on May 1 – the day before the first rebate checks will hit the mail.
You can create your ad as written text, video, print ads or podcasts. Send your written entries via plain text (either as a text file or just typed directly in the body of the email) or PDF. Scans or artwork must be in JPG. If you create a video or podcast, send me the URL where the video or podcast is hosted – consider YouTube, AOL video, Google video, Yahoo video or your own site. No other attachments or formats will be accepted.
Entries must be in English.
You must include your full name and your email address with your entry. I won’t publish your email address, but I do need contact information for the winning entry. I respect your privacy, and I will not send you anything unrelated to your entry in this contest.
You can enter the contest as many times as you’d like, as long as each submission is unique.
By entering the contest, you agree that b5media may post any part or all of your submission, including your name, as a part of the contest announcements or promotions, with the exception of your email address.
By entering the contest, you agree that all works submitted on your behalf are original and belong to you or you declare that you have the right to submit those works. You may not submit images or ideas that are not your own or that you do not have permission to submit.
All decisions relating to finalists and winners are in my sole discretion and are final.
