Se Sweetness and Spice: Tax Issues for Foodies Susan E. Anderson Elon University H. Lynn Stallworth Appalachian State University ABSTRACT: A food blog and a catering business provide an issue-rich context in which students examine tax issues involving individuals, a partnership, and a single owner LLC. The case illustrates how advances in technology and social media occur without the issuance of directly applicable tax guidance, thus introducing students to uncertainty in interpreting the tax law and providing professional advice. The goals of the case are to increase students' (1) abilities to identify tax issues for individuals and small home-based businesses, (2) tax research proficiency, (3) written communication skills, (4) technical knowledge, and (5) experience in tax planning. The case helps students develop four of the core competencies expressed in the AICPA's (2012) CPA Vision Project, including improving students' abilities to interpret converging information, think strategically and critically, communicate effectively, and adeptly use technology. Student responses to a posttest questionnaire indicate that the case helped develop their issue identification, tax research, and writing skills. Keywords: blog; small business; hobby; tax; passive; tax research; business use of home. INTRODUCTION isters Kate Millette and Didi Millette Kennedy both have degrees from culinary school and have long wanted to start a food-related business together. In December 2014 they decided that a food blog would be the perfect choice-each indulging their interests in food and photography. The blog, Sweetness and Spice, is also a means of promoting Kate's catering business. The sisters grew up in a family in which food was celebrated and they love sharing recipes, weekly meal plans for family dinners, and other food-related content including reviews of restaurants, wine, kitchen products, and cookbooks. Kate is the sole owner of her catering business, Katering, LLC. The business is operated out of her home in Asheville, North Carolina where she lives with her 12-year-old daughter, Kelsey. Katering specializes in luncheons and receptions for business clients. The business has a loyal customer base and generates cash of around $5,000 a month. Kate borrowed $29,000 on a home-equity line of credit in 2014 to build a modest commercial kitchen in the basement of her home. All of the food for her catering business and blog is prepared in the commercial kitchen. Kate has a separate kitchen on the main floor of her home, but generally prepares family meals in the basement kitchen because it is more convenient. Most of the kitchen renovations were completed at the end of 2014 at a cost of $25,000. A commercial stove was purchased for $3,800 at the beginning of March 2015. Kate has converted an extra bedroom in the house to an office for both the catering business and the blog. She made several expenditures during 2014 to renovate the office. The commercial kitchen occupies 360 square feet and the office 225 square feet of her 2,250 square foot home. Kate uses the home office 25 percent of the time for the blog and the remaining time for Katering. Kate's filing status is Head-of-Household and she is a cash-basis taxpayer. Kate posts to the blog three or four times a week, spending between 15 and 20 hours per week. Her weekly posting schedule is a weekly meal plan, one or two recipes, and a product review. In the food blogosphere, it is common for publishers to send out duplicate copies of cookbooks to bloggers in the hope that the blogger will review the cookbook and host a blog