How to Determine if Your Podcast is a Business or a Hobby

🎙️Podcasts that are not sponsored, monetized, or generating revenue through affiliate programs may be considered hobbies.

💼A podcast is more likely to be considered a business if there is an intention to generate income and it is actively monetized.

🔎The IRS considers various factors when determining if an activity is a business or a hobby, including profit motive and effort put into the activity.

💰If your podcast is a business, you may be eligible for tax deductions for expenses related to equipment, hosting fees, marketing, and more.

📄Consult with a tax professional to determine the proper classification of your podcast and to ensure compliance with tax regulations.

What factors determine if a podcast is a business or a hobby?

—The IRS considers factors like profit motive, monetization, sponsorship, and effort put into the podcast when determining its classification.

Can I deduct podcast-related expenses if my podcast is considered a business?

—Yes, if your podcast is a business, you may be eligible to deduct expenses such as equipment, hosting fees, marketing, and more. Consult with a tax professional for guidance.

What if my podcast generates some revenue, but it's not enough to cover expenses?

—Even if your podcast does not generate a profit, it may still be considered a business if there is a genuine intention to make a profit and efforts are made to that end.

Do I need to report podcast income on my tax return?

—If your podcast is a business, you should report any income generated on your tax return and accurately track and report related expenses.

Should I consult with a tax professional regarding my podcast's classification?

—Yes, consulting with a tax professional is recommended to ensure proper classification, understand tax obligations, and take advantage of potential deductions.

00:00Determining if your podcast is a business or a hobby involves considering factors like monetization, sponsorship, and profit motive.

01:45If your podcast is not sponsored, monetized, or generating revenue through affiliate programs, it may be considered a hobby.

03:12A podcast is more likely to be considered a business if there is an intention to generate income and it is actively monetized.

04:28Consult with a tax professional to determine the proper classification of your podcast and to ensure compliance with tax regulations.