The key thing to look at is whether the costs have a relationship to your content creating activities, if it is, there’s a good chance you can deduct these costs and deduce your tax bill,
Here is a list of things you could be deducting;
- home office expenses;
- phone and internet expenses;
- depreciation losses on equipment and other assets;
- vehicle or travel expenses, if the content creation involves travel; however, home to work travel (for example, if the creator has a studio or workspace that is not at home) is not deductible;
- professional fees (for example, accounting or tax agent fees related to the content-creation activity) and fees for creative services (for example, fees for editing, design or promotional work);
- subscriptions for online content or apps that content creators use for their activity;
- the cost of buying games and expansion packs (that is, for professional gamers or content creators who feature the games in their content);
- music licensing fees;
- in-game micro-transactions for professional gamers or content creators, if these transactions are necessary to be competitive in deriving income from gaming or streaming; and
- the costs of materials (for example, materials used in instructional videos).
For an expense or loss to qualify for deduction, it must be associated with generating income, indicating a connection between the cost and the business or income-generating endeavor. In the context of a business, deductible expenses are permissible, even if the business is not currently profitable, provided there is an evident intention to generate a profit.
Please get in contact with us today if you need help with your tax return!