One of the most useful speakers at I_Blog was BJ Weber (@BJ_Weber) from Ankeny Tax and Accounting. He gave lots of great info about what "counts" as income and how to really figure out if your blog is a hobby (which you don't claim) or a business (which you do claim). This is a long video (57 minutes) but it's full of great info. If you have questions I invite you to contact BJ at either of the above links.
Do download the entire video CLICK HERE. It is 57 minutes and may take a while to load, depending on your connection.
I've also broken the video into 7 parts to more easily digest:
About Jody
So I have a question. I do not have my last name on ANY of my sites and even when I have companies ship they ship to my blog name not my REAL name. I have no documentation so then what? I have about 20,000 in product that I can THINK of. Nevermind actual.
Who would review if they had to claim all that when they never received any monetary means. You'd be paying in the end. Not logical…
Just because you don't use your name on your sites does not mean you are untraceable; this is the IRS we are talking about. The same IRS that just hired hundreds of new agents to monitor the new regulations. Whether or not you take the sound advice of a tax professional who actually spent quite a bit of time speaking with the IRS is completely up to you. But if you take write-offs for your blog or website you also have to show income.
As for logical… Again, this is the federal government and IRS you are dealing with. No one ever said either is a logical entity.