What can I deduct?

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!

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