Channel expenses
Does anyone write off expenses for their YouTube channel? If so, how is it done? I need to get a new computer for editing videos. Doing everything on my phone is a pain in the butt.
Discussion
It's not that hard
a simple schedule C profit/loss is all you need
www.irs.gov/forms-pubs/about-schedule-c-form-1040
(may have to get a state tax #, check your local laws)
get a DBA from your county, and as a sole propriatorship, you and the company are the same thing
mud toe productions, (under my wife) was created for that. we keep receipts for cars, track building materials, anything that ends up on film, or supporting that.
then when you sell stuff (anything), ad income, etc run it thru there, too
also, lets say you do an open to the public event, income goes thru it, too
I ran all my small businesses like that.
actually very simple, and no need to itemize.
dr
- I agree. Not arguing but schedule c is in fact considered itemizing. Profit & loss statement is itemizing expenses. — Dutch_Clutch_Racing
- Although not itemizing in the sense of personal income tax on capital gains or stock sales so yes....generally easier/simpler than "itemizing". — Dutch_Clutch_Racing
As an indie author I've been running a publishing biz the past 3 years - which helped me officially write off costs of copyrights - cover art - illustrations - etc. But things have not really taken off financially so this year I will dissolve the biz and it will be a hobby. You could do that but there are a lot of rules to follow - especially around 'writing off' technology items. And of course the clock is ticking for you to show a profit in a few years.
One thing to consider is something like an iPad which you can get for around $350 which has iMovie and can run CapCut etc.
If you mean write off as in on your income taxes...?....that would mean you itemize your income taxes and consider this Hotwheels racing to be a business. A business has to show a profit in 5 years time or it is considered a hobby and you can't write stuff off. If you consider this a business you also are now required to claim any $ sent to you as income.
It is a legal mess to try to monetize this "hobby"....it could be done and has been done but the danger comes at possibly no longer being...."FUN".