Economy

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Just a copy and Paste Job...

Posted 17 months ago|7 comments|507 views
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Philly requiring bloggers to pay $300 for a business license
By: Mark Hemingway
Commentary Staff Writer
08/22/10 5:10 PM EDT

It looks like cash hungry local governments are getting awfully rapacious these days:

Between her blog and infrequent contributions to ehow.com, over the last few years she says she's made about $50. To [Marilyn] Bess, her website is a hobby. To the city of Philadelphia, it's a potential moneymaker, and the city wants its cut.

In May, the city sent Bess a letter demanding that she pay $300, the price of a business privilege license.

"The real kick in the pants is that I don't even have a full-time job, so for the city to tell me to pony up $300 for a business privilege license, pay wage tax, business privilege tax, net profits tax on a handful of money is outrageous," Bess says.

It would be one thing if Bess' website were, well, an actual business, or if the amount of money the city wanted didn't outpace her earnings six-fold. Sure, the city has its rules; and yes, cash-strapped cities can't very well ignore potential sources of income. But at the same time, there must be some room for discretion and common sense.

When Bess pressed her case to officials with the city's now-closed tax amnesty program, she says, "I was told to hire an accountant."

She's not alone. After dutifully reporting even the smallest profits on their tax filings this year, a number — though no one knows exactly what that number is — of Philadelphia bloggers were dispatched letters informing them that they owe $300 for a privilege license, plus taxes on any profits they made.

Even if, as with Sean Barry, that profit is $11 over two years.

To say that these kinds of draconian measures are detrimental to the public discourse would be an understatement.

Read more at the Washington Examiner: http://www.washingtonexaminer.com/opinio...
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COMMENTS
scotmanster
scotmanster
17 months ago: I can see with the right amount of exposure this would make an excellent news story on msm channels. This can be easily fought in my opinion she just has to prove to the local Government that the amount of money she made is actually a loss and she accidentally filed it as a profit.

This is why people need to understand being a blogger is just like owning a business. She could have avoided all of this by having a good tax preparer and used common sense. Here in NY you don't have file for a business permit unless you make a consistent profit over time.

Right down to the coffee,sugar, and creamer you drink will blogging and article writing can be considered as a business expense. That money you invested for that really comfy chair to avoid back strain while sitting at the computer is considered an expense when you first paid for it. Your computer,peripherals are all expenses.

My point is anything that helps you facilitate the writing of that article are all business expenses. Right down to the clothing on your back.

My years working as a business owner gives me the added edge of knowing these things. I'm afraid they are right when they said you should have hired an accountant. I do feel pain for her. I would go back to the tax filing office and ask them to write out a new correct tax return for her. This can be done without hiring a lawyer and will hold alot of weight.

scotmanster
scotmanster
Content Removed by scotmanster
scotmanster
scotmanster
17 months ago: I just did a quick write up on this guys if you want my full take on it check it out.

As webmaster,authors and writers we need to know when a profit is actually a profit. Understanding the basic fundamentals of a business will help you determine that..Check it out and tell me what you think..

Are Bloggers Really Making A Profit? http://nichewebsitestrategy.com/bloggers...
17 months ago: I haven't read her blog so must assume that it is like all the other blogs out there, purely for the individual to let off steam, pass on information and NOT to make a living. If every blogger had to pony up this kind of blood money, there would be a revolt that no city, county or state government could contain, much less win.

Business liscense to blog, what moron thought that up.
scotmanster
scotmanster
17 months ago: She should not have claimed that she made $50.00 in "profit". She discounted all the working hours it takes to maintain a blog.

I blog daily inorder for me to make any amount of profit off of Google adsense I would have to make atleast $601.00 dollars a month.

I work on average 2 hours a day preparing content if you set your estimated hourly wage to be atleast $10.00 an hour and 30 days later.. Anything less than $600.00 a month equals a loss. Don't sell yourself short is my point.

This whole thing stems from people not taking the internet seriously as you would a regular business. Plus chalk it up to all the Internet Marketers teaching blogging is 100% profit is a farce.

So you are right six the local government trying to say she made a profit blogging and to turn around and require her to get a small business license is a joke at best. All she has to do is prove is that $50.00 was in actuality a loss.
16 months ago: What's confusing to me is how to prove this. I've been doing this stuff for a little over 2 years. I made under $300 the first year, paid taxes & filed an extension last year cause I was confused (have to file it next mo.). All I did was pay the amount I thought I owed w/my extension. I figured it out by using the SE formula and deducting not one thing. Seems like there should be something for me.

I suppose I should go to a tax person. I do the writing thing pretty much FT so I just can't see how there's nothing that I can use to offset the money earned each month. I had to buy a new laptop in 2010 that's primarily used for business not fun (although I love it), plus internet access, website purchase, and other things I'm sure.

Anyhow, glad this was re-posted. I have to get my tax info together.

Scot - your website is phenomenal. Very good info. If I understand you correctly, you are saying that it's not just the daily, monthly, yearly earnings, but that it's important (to put it mildly) to calculate what is put INTO the work. Is that right? So, if I spend 6 hours/day writing or prepping content then I need to charge out for that? And, you're right, I've heard 100% profit and pay taxes on it, that trying to use expenses was too hard. I literally heard someone say it was too hard and so reduced it wasn't worth it to try expenses to offset taxes.

I'm shutting up for now. Thanks guys.
scotmanster
scotmanster
16 months ago: I am not a tax professional so this just advice. Goto a tax professional tell them your situation tell them your a freelance writer. Which you are, if you posting daily weekly to your blog you are technically a freelance writer.

Check out this website it gives you all full list of what you can write off as a freelance writer.

http://taxes.about.com/od/taxplanning/a/...

I'm not sure this would work but you can ask a tax professional. You can create a new section in the schedule C form and call it article value expenses then put in just enough articles to claim a loss. I think once you claim an expense in a year you can't claim it again next year. Most articles range from 10-30$ from an article service. Meaning any past work(articles) you have done does have a value, you had to post it to make money? You made money but what did you sell to make money? You "sold" your service as a writer in the form of an article. So yes each article should have a value attached to it imho.

Hell I am thinking with how much expenses you have as a blogger/freelance writer you will not even have to do what I said above. I know you have enough yearly expenses as a freelance writer as I do to claim that $300.00 as a loss. I have alot more expenses than 300$ a year.

Thanks for the cool compliments on my website!

scotmanster
scotmanster
16 months ago: Esample of past schedule C

http://www.irs.gov/pub/irs-pdf/f1040sc.p...

Here is a schedule C example

Expenses for business use of your home. Attach Form 8829

http://www.irs.gov/pub/irs-pdf/f8829.pdf

Plenty in those two forms to schedule a loss as a blogger. The key is keep track and show receipts.

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