Hi there,
Couple of quick questions regarding income and expenses related to blogging. For background, we have a partnership ABN, and as such intend to complete the partnership tax return in addition to our personal returns.
While the blog is only recently monetised we are receiving affiliate income from products and services we recommend and also expect to start receiving advertising revenue from ad networks in the near future.
1) If this income (affiliate or advertising) comes from companies based overseas and is paid in a currency other than AU$ (e..g US$) is the income considered foreign source income? And if so, which section of the partnership tax return should it be recorded?
2) Also, do we declare the income based on the US$ amount, the amount we received in AU$ once the income is received in our Australian bank account, or calculate using some other method?
It’s worth noting the income does not relate to work undertaken overseas, it’s just the entity sending the payment.
With regard to blog operating costs, we often have software and web hosting expenses in US$, paid to various entities around the globe.
3) Do these expenses get recorded in AU$ as shown on our Australian credit card bill, or does the cost of the expense need to be calculated in a different way?
Any advice on the above would be really appreciated.
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