Podcasting is either a hobby or business. In this video, Attorney Richard Stim explains how the distinction could result in a big savings on taxes. Information is also provided on Form 1040 and Form 1065, deductions, corporate taxation, as well as how to obtain a federal employer identification number (referred to either as an EIN or FEIN).
- [Voiceover] Taxes.…Here are some things that podcasters…should know about taxes.…Podcasting is either a hobby or a business.…For tax purposes, a hobby is an activity…you engage in for reasons other than making a profit.…If you treat podcasting as a hobby,…you can deduct your expenses from the hobby income,…and you must itemize your deductions on Schedule A…attached to your Form 1040.…If you're sure you're operating as a hobby,…you don't need to review the rest of this video.…
If you treat podcasting as a business, not a hobby,…you may be able to get a tax break…by deducting podcast losses from non-podcast income.…That could reduce your taxes by hundreds of dollars or more…and may even result in a refund.…What does it take to show the IRS that podcasting…is your business?…The IRS operates under presumption…known as the three of five rule,…according to which any business that loses money…for three out of any five consecutive years…is presumed to be a hobby, not a business.…
But that's just a presumption, and it's still possible…
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- Choosing the right name for your podcast
- Using music and interviews in a podcast
- Understanding government regulations
- Responding to complaints
- Generating podcast income
- Registering podcast trademarks and copyrights