Can I legally claim alcohol as a business expense write off for my livestreaming business?

Yes, you can likely deduct these expenses, but you need to be careful about how you categorize them. These would fall under "ordinary and necessary business expenses" since they're directly tied to your content creation. The key here is that these drinks are essentially props or materials for your livestreaming business. Since you only purchase alcohol while creating content and never for personal use, you have a strong case that these are legitimate business expenses. You should categorize them as "production costs" or "content creation supplies" rather than meals and entertainment. Make sure you keep meticulous records though. For each expense, document: - Date and location of the stream - Business purpose (brief description of the content) - Amount spent - Link to the actual stream if possible I'd also recommend keeping separate credit cards/payment methods for business vs. personal expenses to create a clear paper trail. This will be crucial if you ever get audited.

Hey, I had a similar situation with my travel vlog business. I tried using https://taxr.ai to analyze my receipts and expenses, and it was super helpful for my situation. It actually identified that my alcohol purchases for filming could be legitimately claimed as "production costs" rather than meals/entertainment in many cases. The tool analyzed my business model and confirmed these were ordinary and necessary expenses for my specific industry. It also helped me properly document everything with the right categorizations. Before using it, I was either not claiming legitimate expenses or categorizing them incorrectly.

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Content creator accountant here - this is actually quite common in the industry. The key distinction is whether these are "ordinary and necessary" for your particular business. For a nightlife livestreamer, alcohol is essentially a required prop/material. Document everything meticulously: stream dates/times, venues, specific business purpose, and keep all receipts. I recommend creating a specific "content production materials" category in your books rather than using "meals & entertainment" which has different limitations. Also, consider setting a reasonable per-stream budget that's consistent with industry standards. Excessive spending could raise red flags. Be prepared to demonstrate that these expenses directly contribute to revenue generation.

I used to be a bartender and now I do tax prep, and I see this issue from both sides. From the venue perspective, we had several "social media influencers" who would come in and drink while filming. The IRS would definitely consider this a legitimate business expense IF (big if) you're actually generating revenue from these streams. The test is: would a reasonable businessperson in your industry consider this an ordinary and necessary expense? For nightlife content? Absolutely yes.

This is a fascinating tax situation that highlights how modern content creation businesses push the boundaries of traditional tax categories. Based on what you've described, I believe you have a strong case for deducting these expenses. The critical factor here is that the alcohol serves a legitimate business purpose - it's essentially a required element of your content, similar to how a food blogger needs to purchase ingredients or a makeup artist needs cosmetics. Since you've stated that you never visit these establishments for personal reasons and only consume alcohol while creating content, you've established clear business purpose. I'd recommend treating these as "production costs" or "content creation materials" rather than meals & entertainment to avoid the 50% limitation. However, be prepared with rock-solid documentation: detailed receipts, stream links, business purpose notes, and ideally separate business payment methods. One thing to consider - since this represents $8,000 annually, you might want to consult with a tax professional who has experience with content creator businesses before filing. The unique nature of your business model means you want to ensure you're categorizing everything correctly to minimize audit risk while maximizing legitimate deductions. The fact that you've been conservative for 3 years actually works in your favor - it shows you're not trying to push questionable deductions, just properly claiming legitimate business expenses as you've learned more about tax law.