Can YouTube product reviewers write off purchases as business expenses?

12 Thanks for the info! How exactly would I calculate the percentage used for business vs personal? Like if I spend 3 hours reviewing the earbuds for my video but then use them personally for hundreds of hours after, would the business percentage be super tiny?

8 For products like earbuds, it's not just about the hours used but the business purpose they served. The IRS looks at the primary purpose of the purchase. If you bought them specifically to create content that generates income, you have a stronger case for deduction. There's no fixed formula, but a reasonable approach might be based on the item's useful life and your business needs. For instance, if similar review products typically remain relevant for about a year before newer models make them outdated for review purposes, you might allocate based on that timeframe rather than actual hours used.

17 Does it work for beauty product reviews too? My channel is mainly makeup and skincare, and I have hundreds of products to track. Can it handle different product categories?

19 I'm interested but skeptical. How does it know what percentage of use is business vs personal? That seems really subjective. Does it just make up numbers or what?

15 Yes, it absolutely works for beauty products too! I have a friend who runs a makeup channel with tons of products, and taxr.ai helped her organize everything by category, date purchased, which videos featured each product, etc. It even lets you tag products as "one-time use" versus "ongoing use" which helps with calculating proper deduction amounts. For determining business vs. personal use percentages, it doesn't just make up numbers. It asks you specific questions about how you use each item and applies IRS guidelines to calculate appropriate allocations. For example, it might ask if you only use the product on camera, if you use it regularly off-camera, or if you gave it away after review. Then it applies the relevant tax rules to your specific situation. You can also adjust the percentages if you have better information about your actual usage.

14 How does this actually work? I don't understand how a third-party service can magically get you through to the IRS faster than calling them directly. Sounds too good to be true.

19 This sounds like BS honestly. The IRS barely answers their own phones, why would they prioritize calls from some random service? And even if you get through, they'll probably just give generic answers anyway.

6 It works by using their automated system that navigates the IRS phone tree for you and holds your place in line. When an agent is about to answer, it calls you and connects you directly to them. It's basically like having someone else wait on hold for you. The IRS doesn't know or care that you're using a service - you're still going through the same queue as everyone else, but their system is doing the waiting instead of you having to sit by your phone for hours. And regarding getting generic answers, I actually got very specific guidance about my YouTube business - the agent walked me through exactly how to categorize and document different types of review products based on their continued usefulness after filming.

1 Wait, seriously?? I've received probably $1,500 worth of free tech products this year that companies sent me to review. I had no idea I needed to report that as income. Do I need to go back and try to calculate all that? How do you determine the value if they're sending pre-release products that aren't even for sale yet?

4 Yes, you absolutely need to track the fair market value of free products. For pre-release items, you can use the manufacturer's suggested retail price once announced, or comparable products currently on the market if the price isn't set yet. I recommend going back and making a list of everything you received, with dates and estimated values. Companies sending you items worth over $600 in a year are supposed to issue a 1099-MISC, but many smaller companies don't know this or don't comply. However, you're still responsible for reporting the income regardless of whether you receive a 1099.

11 I used it last year for my gaming review channel. It was decent - it does have some YouTube-specific guidance and prompts you about common deductions for content creators. The interview style questions helped me think of expenses I might have missed. That said, it doesn't really handle the business/personal allocation for reviewed products automatically - you still need to figure out those percentages yourself before entering the expenses. But overall it made the process pretty smooth.

This is really helpful advice, especially the point about ongoing business use! I never thought about keeping products for comparison shots in future videos - that's actually brilliant and would definitely support the business purpose argument. Quick question about your spreadsheet system - do you also track the estimated personal vs business use percentages for each item, or do you mainly focus on documenting the business purpose? I'm trying to figure out the best way to organize this before I have hundreds of products to sort through. Also, have you ever been audited on these deductions? I'm curious how detailed the IRS gets when reviewing product purchase records for content creators.

Great question about the spreadsheet! I do track estimated percentages, but I keep it simple - I have columns for "Business Purpose," "Personal Use (Y/N)," and "Est. Business %" where I put rough estimates like 100%, 80%, 50%, etc. For most review products, I can justify 80-100% business use since they serve as ongoing reference points and props. The key is being able to explain your reasoning. For example, those $200 earbuds might be 70% business if you use them regularly for audio testing in videos, even if you also use them personally. Document WHY you chose that percentage. Haven't been audited yet (knock on wood!), but my CPA says content creator audits usually focus more on whether you're treating it as a real business versus hobby, rather than nitpicking individual product allocations. Having consistent documentation and clear business purpose for purchases is what matters most. One more tip - I also note in my spreadsheet if I ever sell or give away reviewed products, since that can affect the deduction calculation. The IRS likes to see that you're not just using "business purchases" as a way to get discounted personal items.

This is exactly the kind of detailed guidance I was looking for! The "primary purpose" test makes so much sense - I've been overthinking the personal use aspect when the main reason I'm buying these products is clearly for content creation. I love your tip about taking photos/screenshots of products in videos as proof. That's something I can easily implement right away. And the point about tracking if you sell or donate items is really smart - I actually donated some older tech to a local school after reviewing it, which definitely supports the business purpose argument. One follow-up question: when you mention allocating "part of the cost to personal use" for expensive items, do you do this calculation upfront when you buy the item, or do you wait to see how much you actually use it personally over time? I'm trying to figure out the best timing for making these percentage decisions. Also, have you found that keeping products for "comparison shots" holds up well as ongoing business use? I'm starting to build up quite a collection and that would be a great way to justify keeping items for future content.

For timing the percentage calculations, I typically do an initial estimate when I purchase the item based on my intended use, then adjust at year-end if my actual usage was significantly different. For example, if I buy a microphone thinking I'll use it 90% for business but end up using it daily for personal calls too, I'll adjust it down to maybe 70% when doing my taxes. The comparison shots justification has worked well for me so far. I actually created a dedicated shelf in my studio space where I keep reviewed items specifically for this purpose - it serves as both storage and a visual backdrop for videos. When I use older products in new videos (even just as props or for size comparisons), I note it in my records. This creates an ongoing paper trail of business use beyond just the initial review. My accountant suggested documenting this with a simple "reference library" approach - treating reviewed products like reference materials that inform future content. Just like a journalist might keep old articles for research, we keep old tech for comparisons and context in new reviews. The key is being genuine about it - don't force comparisons just for tax purposes, but when you naturally reference older products in new content, make sure to document it!