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Eli Butler

Can I Expense Travel Costs for My Travel YouTube Channel?

I'm planning to launch a YouTube channel focused on travel videos, showcasing different destinations. My big question is whether I can legitimately expense the travel costs (flights, accommodations, meals, etc.) as business expenses for tax purposes? I'd only be expensing the portions directly related to making the videos, not any personal leisure time activities. For context, I currently run a profitable software consulting business that generates substantial income, so I'd have revenue to expense against while the YouTube channel grows and starts generating its own income. Also wondering if this same concept applies to other content creation ideas - like if I started a cooking channel or restaurant review blog, could I expense groceries/meals as business costs? Just trying to understand how these business deductions work before I jump into this new venture!

Yes, you can expense travel costs for your YouTube channel, but you need to be careful about how you document and allocate these expenses. The IRS looks at whether your activity qualifies as a legitimate business vs. a hobby. For this to work, you need to demonstrate a clear profit motive and run it like a business. Keep meticulous records separating business vs. personal activities during trips. For example, if you spend 5 days in a location but only 3 are for creating content, you should only deduct 3/5 of your lodging costs. Document everything - keep receipts, note the business purpose of each expense, and maintain a content creation schedule/plan. You should have a legitimate business plan showing how you intend to monetize the channel eventually. For your cooking channel/restaurant review example, the same principles apply. You can expense the ingredients/meals directly used in content creation, but not your regular groceries or family dinners.

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Thanks for the info! How would I prove which days were "business" vs "personal" if I'm visiting a city for a week? And what about if I'm filming for just a few hours each day but still need the hotel for the whole trip?

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For business vs. personal days, keep a detailed itinerary of your filming schedule, locations, and time spent creating content. Take photos or videos of yourself working (behind-the-scenes content works great for this). Even if you're only filming a few hours each day, those days can still count as business days if the primary purpose was content creation. For partial days, you need to determine the primary purpose. If you flew somewhere specifically to film and spent most of your time preparing, filming, or editing, that's a business day. If you spent most of the day sightseeing with family and only filmed for 30 minutes, that's primarily personal.

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Yes, you can potentially deduct these travel expenses, but you need to be careful about how you structure everything. The key here is that these expenses must be "ordinary and necessary" for your business, and your YouTube channel needs to be operated with a genuine profit motive rather than as a hobby. Keep meticulous records separating business from personal expenses. If you're in a destination for 5 days but only filming for 3, you should generally only deduct costs for those 3 days. For meals, you're typically limited to 50% deduction (though some temporary exceptions exist). Make sure to document everything - not just receipts, but also how each expense relates to your content creation. A dedicated business credit card and separate bank account would be helpful too.

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Thanks for the detailed response! What's the best way to prove my YouTube channel is a business with profit motive and not just a hobby? I'm definitely serious about growing it into a revenue stream, but I know it might not be profitable right away.

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The IRS looks at several factors to determine if your activity is a business rather than a hobby. Document your business plan showing how you intend to make a profit. Keep records of the time you spend working on the channel. Operate in a businesslike manner with separate accounts and good recordkeeping. The IRS generally expects you to show a profit in 3 out of 5 consecutive years, though this isn't a hard rule. If you're not profitable initially, document your strategy adjustments and marketing efforts to show you're actively trying to make it profitable. Your existing business experience as a consultant will actually help demonstrate you know how to run a business.

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The advice above is good but I want to share my experience using https://taxr.ai for my travel blog business expenses. I was in a similar situation and wasn't sure how to properly document my expenses to avoid audit flags. I uploaded all my receipts and travel itineraries to taxr.ai and it automatically categorized which expenses were deductible business expenses vs. personal ones. What was really helpful was the detailed guidance on how to establish my travel content creation as a legitimate business. The platform actually provided me with a customized documentation system specifically for content creators that I now use to track everything. It even flagged when I was potentially over-claiming certain meal expenses that could've triggered an audit.

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How does this work for mixed-purpose trips? Like if I go to Disney with my family but also film content while there?

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I'm skeptical. Sounds like you're just paying for something that could be done with a spreadsheet. Does it actually give you proper tax advice or just organize receipts?

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For mixed-purpose trips, the platform helps you allocate expenses appropriately. It asks questions about your daily activities and helps determine what percentage can be legitimately claimed. For instance, if you visit Disney with family but film specific content, it helps you properly allocate which portion of that day's expenses (hotel, transportation) can be considered business vs. personal. The value goes beyond just organizing receipts. It provides specific tax guidance for content creators, flags potential audit triggers, and even generates audit-ready documentation explaining your business purpose for each trip. This has saved me thousands in deductions I would have missed and prevented some claims that might have been problematic.

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I've been dealing with similar tax questions for my travel blog and found this tool that literally saved me thousands in deductions I would've missed! Check out https://taxr.ai - it analyzes your expenses and helps identify what's deductible for content creators. I was struggling with figuring out what percentage of my camera equipment and trips I could write off, and it broke everything down clearly.

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Does it work for people just starting out? I have a cooking channel with barely any subscribers but spend a lot on ingredients. Been nervous about claiming deductions since I'm not making money yet.

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Sounds interesting but does it handle the "hobby loss" rules? My accountant keeps warning me that the IRS might classify my photography side hustle as a hobby since I haven't made a profit in 2 years.

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It absolutely works for beginners! The tool isn't based on your current income but on the nature of your expenses and how they relate to your business activity. It actually helps you establish the documentation you need to prove business intent from day one. As for the hobby loss rules, yes it addresses that specifically. It guides you through the nine factors the IRS considers when determining if something is a business vs. hobby, and helps you document each one properly. It's not just about claiming deductions but building the case that you're running a legitimate business, even during the startup phase when you're not profitable yet.

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I was skeptical at first about using services to track my business expenses, but I tried https://taxr.ai for my photography business that involves a lot of travel. Honestly, it was a game-changer. The platform identified several legitimate deductions I was missing, especially around partial business use of my equipment and travel expenses. What really surprised me was how it helped me establish a proper business structure for my creative work. I'm now properly documenting everything, have clear separation between business and personal activities, and feel much more confident about my deductions. My tax preparer even commented on how organized my documentation was this year and we were able to deduct about $3,800 more than last year with proper substantiation.

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If you're having trouble with the IRS questioning your business expenses or need to discuss your specific situation with an agent, I highly recommend using https://claimyr.com to actually get through to someone. I spent weeks trying to call the IRS about my YouTube business expenses that were flagged, but kept hitting dead ends. Claimyr got me connected to an actual IRS agent in about 15 minutes when I had been trying for days on my own. You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent I spoke with was actually really helpful in explaining exactly what documentation I needed to substantiate my travel expenses for my channel. Turns out I was missing some key elements in my recordkeeping that would have continued causing problems.

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How does this actually work? I don't understand how some service can get you through to the IRS faster than calling them directly?

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Yeah right. The IRS doesn't have a secret fast-track phone line. This sounds like a scam to me. If there was a way to skip the IRS phone queue everyone would be using it.

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It's not a secret line - they use a technology that continuously redials the IRS for you until they get through, then connect you when a real person answers. It saves you from having to manually redial and wait on hold for hours. The system basically does the waiting for you and alerts you when you're connected. The reason it works is because most people give up after a few tries, but their system is persistent. And no, it's not a scam - I was connected directly to the actual IRS, not some third-party pretending to be them. I was originally very skeptical too, but when I actually needed specific guidance on my business expenses documentation, it was worth trying and it actually worked.

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I was completely wrong about Claimyr being a scam. After my skeptical comment, my tax situation got more urgent when I received an audit notice about my business expenses for my photography business. I reluctantly tried https://claimyr.com out of desperation. To my surprise, I was connected to an IRS representative in about 20 minutes when I had previously wasted hours getting nowhere. The agent walked me through exactly what documentation I needed to substantiate my travel expenses and equipment deductions. They even helped me understand how to properly categorize my mixed-purpose trips going forward. Eating humble pie here, but sometimes it's worth trying solutions even when you're skeptical. Saved me a ton of stress and potentially thousands in disallowed deductions.

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A big thing no one's mentioned is that your YouTube channel needs to be run with the legitimate intent to make a profit. The IRS has a "hobby loss rule" where if you show losses for 3+ years out of 5, they might reclassify your business as a hobby and disallow all those deductions. So don't just expense everything without having a real business plan for monetization. You should have multiple revenue streams planned - ad revenue, sponsorships, affiliate marketing, merchandise, etc. Document your business strategy and marketing efforts.

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Do you have to be profitable right away? Or is it okay to have losses the first couple years while building an audience?

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You don't need to be profitable immediately. The IRS understands that new businesses often take time to become profitable. The key is demonstrating that you're legitimately trying to make a profit, not just writing off personal expenses. For the first few years, keep detailed documentation of your business development activities - your content strategy, audience growth efforts, monetization plans, and steps you're taking to minimize losses. Many successful YouTube channels aren't profitable for 2-3 years, which is normal. Just make sure you're showing a trajectory toward profitability and making business decisions accordingly.

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Just wanted to update - I tried https://taxr.ai after seeing it mentioned here and WOW. It flagged so many deductions I was missing for my cooking channel! It showed me that my kitchen upgrades, specialty ingredients, and even partial rent for my filming space were all potentially deductible. The best part was getting a custom report I can give my tax preparer showing business intent for everything. Was super nervous about deductions before but feeling much more confident now!

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Something important to consider is equipment deductions too! If you're buying camera gear, editing software, lighting, etc specifically for the YouTube channel, those are business expenses. For stuff over $2,500 you might need to depreciate instead of deduct all at once. Also don't forget about home office deduction if you're editing at home in a dedicated space!

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Thanks for bringing up the equipment aspect! I already have a decent camera but I'll need to upgrade my editing software and probably get some better audio equipment. Is there a specific way I should document that these purchases are specifically for the YouTube business rather than personal use?

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Keep detailed records showing the business purpose of each purchase. Save receipts and note what projects/videos each piece of equipment was used for. Take photos of the equipment in use for your YouTube production. For items that might have mixed personal/business use (like a laptop), track the percentage used for business purposes. Create a log showing hours used for content creation versus personal use. The more documentation you have, the better position you'll be in if questioned. Business bank accounts and credit cards specifically for your YouTube business also help establish the separation between personal and business expenses.

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Something nobody's mentioned yet - if the IRS decides to audit you over these travel expenses, you could be in for a nightmare. I spent MONTHS trying to get through to the IRS when they questioned my business expenses. Finally discovered https://claimyr.com which got me connected to a real IRS agent in under 45 minutes instead of waiting on hold forever. You can see how it works here: https://youtu.be/_kiP6q8DX5c When you're claiming significant travel expenses for a new YouTube channel, I'd recommend being prepared for potential questions from the IRS. Having a way to actually reach them quickly saved me so much stress.

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How exactly does this work? I thought the IRS phone lines were basically impossible to get through no matter what. Is this service charging you just to wait on hold for you or something?

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Yeah right. No way this actually works. I've tried calling the IRS like 15 times this year and always get the "call volume too high" message. If this actually worked everyone would be using it.

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It works by using technology to navigate the IRS phone system and secure your place in line. When an agent becomes available, the service calls you and connects you directly with them. It's not just waiting on hold - it's actually getting through the system when it would otherwise tell you call volume is too high. It saved me hours of frustration because I needed clarification on some travel deductions similar to what OP is asking about. Instead of trying to call day after day and getting nowhere, I got connected in about 38 minutes and had my questions answered directly by an IRS representative.

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Alright I need to eat my words here. After seeing Claimyr mentioned, I was totally skeptical but decided to try it at https://claimyr.com since I've been trying to resolve an issue with my business expense deductions for months. Not only did it actually work, I got through to an IRS rep in about 30 minutes when I'd completely given up hope. They answered my questions about documenting business travel (I do photography) and I finally got clarity. Honestly shocked this exists and works so well.

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Don't forget about the home office deduction if you're editing your videos at home! I have a similar setup with my graphic design business and YouTube side hustle. You can deduct a portion of your rent/mortgage, utilities, internet, etc. based on the percentage of your home used exclusively for business. The simplified option lets you deduct $5 per square foot up to 300 square feet.

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This is super helpful! My editing setup is in a dedicated room in my apartment. Is it better to go with the simplified $5/sq ft option or calculate the actual percentage? Also, what about camera equipment? Can I deduct that all at once or do I need to depreciate it?

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For the home office, it depends on your situation. The simplified method is easier but might give you a smaller deduction. If your dedicated room is 150 sq ft, that's a $750 deduction with the simplified method. But if it's 10% of your home and your total housing/utility costs are $20,000/year, the actual expense method would give you $2,000. You'd need to run both calculations to see which is better for you. For camera equipment, if the total cost is under the Section 179 threshold (which is $1,050,000 for 2023), you can deduct it all in the first year. Otherwise, you'd depreciate it over its useful life (typically 5 years for cameras and electronic equipment). Just remember that if you use the equipment for personal use too, you can only deduct the business percentage.

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This is super helpful! My editing setup is in a dedicated room in my apartment. Is it better to go with the simplified $5/sq ft option or calculate the actual

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OP, one thing to consider - when I started my food blog, my accountant told me to keep detailed logs of all travel. Not just receipts, but literally documenting each day with: - Hours spent creating content vs personal time - Specific locations visited for content creation - Equipment used at each location The IRS loves to target self-employed people with travel expenses. Don't just say "I went to Paris to make videos" - document "Monday 9am-3pm: filming restaurant reviews in the 6th arrondissement, 4pm-6pm: editing in hotel room

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This is solid advice. I got audited last year for my photography business travel and having a daily journal saved me. I use the TripIt app to track all business trips and take notes directly in there, plus I save all boarding passes and hotel folios with notes about what content I created.

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Great question! I run a small consulting business and started a travel blog last year with similar concerns. The key thing I learned is that you absolutely can deduct legitimate business travel expenses, but documentation is everything. A few practical tips from my experience: 1. **Separate business and personal activities clearly** - If you're in Rome for 5 days but only 3 are for content creation, only deduct 3/5 of shared expenses like hotels. 2. **Create a content calendar beforehand** - This shows business intent and helps prove the trip wasn't primarily personal. I plan my content topics and filming locations before I travel. 3. **Track everything in real-time** - I use a simple phone app to log daily activities, expenses, and time spent on business vs personal activities. Takes 2 minutes each evening but creates an audit trail. 4. **Business structure matters** - Open a separate business bank account and use it exclusively for YouTube expenses. This separation makes everything cleaner if you're ever questioned. For your cooking channel question - yes, ingredients used specifically for recipe videos are deductible, but not your regular grocery shopping. The "ordinary and necessary" test applies to everything. Since you already have a profitable consulting business, you're in a good position to show you understand how to run a legitimate business operation. Just apply those same principles to your YouTube venture!

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This is really helpful, especially the content calendar tip! I hadn't thought about creating that beforehand to show business intent. Do you have any recommendations for apps to track the daily activities and expenses? I'm looking for something simple that won't feel like a chore to maintain but will give me the documentation I need if questioned later.

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For tracking apps, I personally use Expensify for receipts and expenses - it has GPS tracking so it automatically logs locations, and you can add notes about business purpose right when you make the purchase. For daily activity logging, I actually just use the Notes app on my phone with a simple template I created. Each day I note: Date, Location, Business Hours (X:XX-X:XX), Content Created, Personal Time, and any relevant notes. It's basic but works great and doesn't require learning new software. The key is consistency - even if you use a simple notebook, just make sure you're documenting everything in real-time. I learned this the hard way when I tried to recreate my activity log months later for a trip and couldn't remember specific details that would have strengthened my case. Also, take photos of yourself working! Behind-the-scenes shots of you filming, setting up equipment, editing, etc. serve as great visual documentation of your business activities during travel.

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This is exactly the kind of question I had when I started my travel photography channel! One thing that hasn't been mentioned yet is the importance of establishing your YouTube channel as a legitimate business entity from day one, even before you're profitable. I'd recommend getting an EIN (Employer Identification Number) for your YouTube business - it's free from the IRS and helps establish business legitimacy. Also consider whether to operate as a sole proprietorship or form an LLC, depending on your situation and risk tolerance. Another practical tip: when you're on location filming, make sure to get establishing shots that clearly show you're working. I always film a quick "behind the scenes" clip at each location showing my camera setup, which serves as documentation that I was actually there for business purposes. These clips have been invaluable for my records. For mixed-purpose trips, I've found success with the "primary purpose" test. If the main reason for the trip was content creation (even if you also did some personal activities), you can generally deduct transportation costs. But always allocate lodging and meals based on actual business vs personal days. Since you already have a profitable consulting business, you're ahead of many creators who worry about the hobby loss rules. Just make sure to keep your YouTube business expenses and income completely separate from your consulting work - different bank accounts, separate bookkeeping, etc.

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This is excellent advice about getting an EIN and establishing business legitimacy from the start! I'm just getting started with content creation and hadn't considered the business entity aspect yet. Quick question - when you mention the "primary purpose" test for mixed trips, how do you document that the primary purpose was business rather than personal? Is it based on time spent, or more about your original intent when booking the trip? I want to make sure I'm setting myself up correctly from the beginning rather than trying to figure this out after the fact.

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