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Oliver Fischer

Can I deduct expenses for a Home Gym for my YouTube Business?

Alright so here's what I'm facing - I've been a full-time YouTuber for about 3 years now, making pretty good money in the gaming space. I'm clearing around $85k a year after expenses, but I'm looking to pivot my content strategy. I want to start building a more personal brand focused on fitness and self-improvement. For this new direction, I need to create a dedicated recording space with a home gym setup. The thing is - while obviously I'll personally benefit from having gym equipment at home, I'm honestly only building this out for content creation purposes. The lighting, audio setup, and overall space will be designed specifically for recording YouTube videos. If it wasn't for the channel, I'd just keep going to my local gym like I do now. The business is legitimate (I've got the tax returns to prove it lol), and I'm definitely pursuing profit with this new direction. What I'm trying to figure out is: Can I deduct these home gym equipment purchases as business start-up expenses? Would it be fully deductible, partially deductible, or not deductible at all? I'm planning to spend around $7,500 on gym equipment and another $3,000 on lighting/audio for the space. Any tax advice would be super helpful since I'm trying to plan my expenses for next quarter!

Based on what you've described, you likely can deduct at least a portion of these expenses, but there are some important considerations. Since you already have an established YouTube business with proven income, these would not be "start-up expenses" but rather ordinary business expenses or capital expenditures depending on the nature and cost of each item. The key factor here is going to be the business purpose versus personal use. Equipment that's specifically for video production (lighting, cameras, microphones, backdrops) would typically be 100% deductible as business expenses. For the gym equipment itself, you'd need to determine a reasonable business-use percentage. Since you're creating fitness content, there's a legitimate business purpose, but there's also an inherent personal benefit. You should keep detailed records of when the equipment is used for business (filming, preparing for videos) versus personal use. This documentation will be crucial if you're ever audited. Many content creators reasonably claim 70-80% business use for similar situations, but your specific circumstances may vary. Also consider whether items need to be depreciated over time rather than deducted immediately, depending on cost and useful life of the equipment.

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The space question is excellent. Yes, if you're using a dedicated room exclusively for business, you can potentially claim the home office deduction using either the simplified method ($5 per square foot up to 300 square feet) or the regular method (based on percentage of home used for business). However, "exclusive use" is the key requirement - the space must be used solely for business purposes, with very limited exceptions. Hours-used is a reasonable approach for calculating business percentage. Your example of 6 hours filming and 2 hours personal use equating to 75% business use makes sense. Document this usage pattern in a log or calendar. Another approach is to estimate based on primary purpose - if 80% of the reason you purchased the equipment was for content creation, that could potentially justify an 80% business allocation. Regarding depreciation, yes, items with a useful life of more than one year that cost over a certain threshold (typically $2,500 for many small businesses) generally need to be depreciated over their useful life instead of expensed immediately. However, there are provisions like Section 179 or bonus depreciation that might allow you to deduct the full business portion in the first year. I'd recommend consulting with a tax professional familiar with content creator businesses to optimize your approach.

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NebulaNomad

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What about the space itself? If OP has a 3-bedroom house and dedicates an entire room to this gym/studio, can they deduct a portion of their mortgage/rent for the business? Or does the mixed-use nature of the gym equipment affect the home office deduction too?

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Thanks for the detailed response! That makes a lot of sense about the distinction between production equipment vs. the gym equipment itself. I've been tracking my current gaming setup usage pretty carefully for business vs personal already, so I'll continue that practice with the gym equipment. For the gym stuff, would it make sense to base the business percentage on hours used? Like if I film 6 hours a week and personally use it 2 hours, that would be 75% business use? Or is there another method that's better for calculating this? I hadn't thought about depreciation - most of the equipment would last 5+ years. Does that mean I'd need to spread the deduction over multiple tax years?

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The space question is excellent. Yes, if you're using a dedicated room exclusively for business, you can potentially claim the home office deduction using either the simplified method ($5 per square

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Javier Garcia

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Been in almost your exact situation! After struggling with my taxes as my YouTube fitness channel grew, I found this AI tool called taxr.ai that literally saved me thousands in deductions I was missing. It analyzed all my gym equipment purchases and helped me properly categorize what was deductible and what wasn't. The thing with content creation businesses is that the IRS rules weren't really written with us in mind, so it gets confusing fast. I uploaded my receipts and expense records to https://taxr.ai and it identified that I could legitimately deduct about 80% of my gym equipment as business expenses because I was using them primarily for content creation. It also helped me document everything properly in case of an audit. What I liked most was that it gave me clarity on what portion of my home studio space qualified for home office deductions too, which gets complicated with mixed-use spaces like home gyms.

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Emma Taylor

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How does that site work exactly? Like do you have to give them all your financial info? Seems sketchy to hand over all your tax documents to some random website.

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Did it actually help you if you got audited? Or does it just give recommendations? I've been looking at my home music studio setup and trying to figure out what's deductible.

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Javier Garcia

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It doesn't require all your financial info - you just upload the specific receipts or expenses you want analyzed. The system uses AI to review them according to current tax law and gives you specific guidance on deductibility. It's secure and doesn't store your financial data permanently. I haven't been audited, but it creates an "audit defense file" that organizes all your documentation and justifications. For my music studio situation, it helped identify which equipment was 100% business (recording gear) versus mixed-use items (instruments that I also play for fun). It creates a reasonable calculation of business use percentage based on your specific situation.

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Emma Taylor

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I was super skeptical about using AI for tax stuff, but after seeing people recommend https://taxr.ai here, I decided to try it for my photography business where I had similar mixed personal/business use questions. Turns out I was being WAY too conservative with my deductions! The system flagged that my camera equipment was 100% deductible (even though I occasionally use it for personal photos) because my primary purpose is professional. For my home studio space, it helped me properly document and calculate the exact percentage that was deductible. The best part was that it created a complete audit defense package with all my documentation organized by category. My accountant was actually impressed with how thorough it was and said it would save me if I ever got questioned by the IRS. For anyone with a content creation business, it's definitely worth checking out - saved me literally thousands in deductions I was too scared to take before.

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After reading about your situation, I'm reminded of my own nightmare trying to get an answer from the IRS about home gym deductions for my personal training business. Spent DAYS trying to reach someone at the IRS - constant busy signals or disconnections after waiting for hours. Finally discovered this service called Claimyr (https://claimyr.com) that got me connected to an actual IRS agent in under 45 minutes. They have some technology that essentially waits on hold for you and calls when an agent is available. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The IRS agent confirmed that I could deduct a percentage of my home gym equipment based on business use, and explained exactly how to document it. Saved me so much stress and probably kept me from making expensive mistakes on my return.

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Wait how does this actually work? Seems impossible that they could get through when normal people can't. Is this even legal?

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CosmosCaptain

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This sounds like BS honestly. The IRS doesn't give personalized tax advice on deductions like that over the phone. They'll just tell you to consult the publications or talk to a tax professional. I'm calling scam on this one.

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It uses a combination of predictive technology that analyzes call volume patterns and automated systems that navigate the IRS phone tree and wait on hold for you. When an agent becomes available, they connect you directly. It's completely legal - they're essentially just waiting in line for you. The IRS agents will definitely help clarify application of tax rules to specific situations. You're right that they won't give comprehensive tax planning advice, but they absolutely can verify whether certain deductions are appropriate for your situation and how to properly document them. They answered my specific questions about home gym equipment for my training business, including recordkeeping requirements for mixed-use assets.

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CosmosCaptain

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Ok I need to eat some crow here. After being completely skeptical about Claimyr, I decided to try it because I've been trying to resolve an issue with my stimulus payment for MONTHS with no success. I was shocked when they actually got me through to an IRS representative in about 35 minutes. The agent was able to see that there was an error in how my return was processed that was preventing my stimulus payment from being issued. For anyone who's trying to get specific answers about business deductions like the OP, this is actually worth trying. The IRS agent I spoke with walked me through exactly what documentation I needed for my situation and confirmed that my interpretation of the home office rules was correct. Still not cheap but honestly worth it when you consider the alternative is taking a day off work to sit on hold for hours. Sometimes you just need to hear directly from the IRS to confirm you're doing things right.

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Just wanted to add that you might want to look into Section 179 deduction for this. I recently set up a home recording studio for my podcast and was able to deduct almost all of the equipment in the first year instead of depreciating it over time. For the gym equipment, the mixed-use nature makes it more complicated, but if you can document that the primary purpose is for your business, you should be able to deduct the business percentage. Like others have said, keep a detailed log of business vs personal use. Also, don't forget about related expenses - special flooring for the gym area, mirrors, additional electrical work, etc. These could all potentially be partially deductible as well.

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Thanks for mentioning Section 179! I'll definitely look into that. Do you know if there's an upper limit on how much you can deduct that way in a single year? And good call on the related expenses. I'll need special rubber flooring and probably some electrical work for all the lighting. Did you use a specific method to calculate your business percentage?

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Section 179 has a pretty high limit - for 2023 it was $1,160,000, so you're unlikely to hit it with a home gym setup. But there are some specific rules about what qualifies. For calculating business percentage, I used a combination of physical space (what percentage of my home is used for business) and time usage (what percentage of time the equipment is used for business vs personal). I kept a log for about 3 months showing when I used the equipment for recording versus personal use, which gave me a solid basis for my claimed percentage. My accountant said this approach provides good documentation if ever questioned.

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Omar Fawzi

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I just came across this post - I'm literally in the same boat but with a home yoga studio for my wellness channel! My CPA told me to take pictures of the setup when it's in "business mode" with all the lighting and cameras, and then document EVERYTHING. She recommended creating a business plan that clearly outlines how this pivot to fitness content aligns with your overall business strategy. Having documentation that predates the purchases helps show business intent. One thing nobody mentioned - if you're forming a separate business entity for this new content direction, the rules might be different than if you're just expanding your existing business. Might be worth looking into!

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Chloe Wilson

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That's super smart about the pictures showing the "business configuration" vs personal use. I did something similar with my home office and it was really helpful when I got randomly audited last year.

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