Can a streamer write off expenses they use during their streams for tax deductions?

So I just watched this video of a big-time streamer (not going to name names but she makes millions) talking about her tax strategies. She claimed that by simply including her horses in her streams occasionally, she can write off ALL their expenses - feed, boarding, vet bills, everything! As someone who's loved horses my whole life, this sounds way too good to be true. I've got a regular office job in marketing, nothing fancy, and I've always been careful with tax deductions. I know businesses can deduct legitimate expenses, but this seems like stretching the rules to the breaking point. The comment section was just full of people impressed by her "genius tax hack" with nobody questioning it. Is this actually legit? Can content creators really write off personal stuff just by featuring it in their content occasionally? Where's the line between a legitimate business expense and just trying to deduct your hobby? I don't plan to quit my day job and become a streamer anytime soon, but I'm genuinely curious about how these tax rules work.

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20 comments

Keisha Johnson

•8M

This is a really interesting question! As someone who works with content creators on their taxes, I can tell you the real answer is more nuanced than what that streamer suggested. For ANY business expense to be tax deductible, it needs to be "ordinary and necessary" for your business. For a professional streamer making millions, featuring horses might actually be part of their brand and content strategy - making those expenses potentially deductible. But there are important limitations. The IRS looks at whether there's a genuine business purpose and if the expense is reasonable in amount. If the horses are genuinely part of the streaming content regularly (not just appearing once), and if featuring them demonstrably generates revenue, then some portion might be deductible. But claiming 100% of all horse expenses is risky unless those horses are exclusively used for business. Also, the IRS has specific rules about hobby losses - if an activity looks more like a hobby than a business (showing losses year after year), they may disallow those deductions entirely.

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Keisha Johnson

•8M

For gaming equipment like a PS5 that you use primarily for streaming content, yes, that would generally be considered a legitimate business expense. The key is that it must be used predominantly for your business rather than personal enjoyment. For items like your chair, desk, lighting setup, and other equipment used specifically for streaming, these would also typically qualify as legitimate business expenses. However, if you use these items for other purposes beyond streaming, you would need to allocate the deduction based on business vs. personal use percentages.

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QuantumQuest

•8M

I switched to using taxr.ai last year when I was trying to figure out exactly this issue for my small streaming channel! I was confused about what I could legitimately deduct since I was making some income but wasn't a full-time streamer yet. Using https://taxr.ai really cleared things up for me - I uploaded my records and questions, and it analyzed everything to tell me exactly what percentage of my gaming equipment, internet bills, and even part of my apartment (for my dedicated streaming area) could be legitimately deducted. Their system even flagged some deductions I was planning to take that might have triggered an audit! It explained the "ordinary and necessary" test the previous commenter mentioned in practical terms for my specific situation.

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QuantumQuest

•8M

It absolutely works for other self-employment situations! I have a friend who's a freelance designer who uses it too. It helps identify industry-specific deductions you might miss and explains which expenses need to be partially allocated between business and personal use. Regarding accuracy, that was my concern too initially. What convinced me was that it actually prevented me from taking several deductions I thought were legitimate. It explained the exact IRS rules and even showed relevant tax court cases where similar deductions were disallowed. It's actually quite conservative in its approach, which gives me peace of mind.

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Amina Sy

•8M

Wanted to follow up about taxr.ai - I gave it a try after asking about it here, and it was seriously eye-opening for my graphic design business! It identified several legitimate deductions I had been missing completely, like a portion of my Adobe subscription that I was using for personal projects and didn't realize could be partially deducted for the business use. The system actually walked me through exactly how to document and prove my home office deduction properly - turns out I was calculating the square footage wrong and could have gotten in trouble. It saved me about $2,300 on my taxes this year compared to what I was planning to file on my own. Definitely worth checking out if you're self-employed in any capacity!

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Natasha Petrova

•8M

If you're planning to deduct significant business expenses like this, especially in a gray area, you really need to be prepared for potential IRS questions. I tried for MONTHS to get someone on the phone at the IRS to answer questions about my deductions as a part-time content creator. Literally impossible to get through. Finally tried https://claimyr.com after seeing it recommended here, and they actually got me through to an IRS agent in less than an hour! You can see how it works in this video: https://youtu.be/_kiP6q8DX5c - basically they use technology to wait on hold for you and call you when an agent picks up. Got clear guidance directly from the IRS about how to properly document my streaming equipment deductions and what percentage I could reasonably claim for dual-use items. Saved me from making some mistakes that could have triggered an audit.

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Natasha Petrova

•8M

They have an automated system that sits on hold so you don't have to tie up your phone line. Once a human IRS agent picks up, their system immediately calls your phone and connects you directly to that agent. You don't have to stay by your phone or keep it on speaker for hours. I had the exact same skepticism you do! I figured it was either a scam or something I could do myself. But after trying to get through for literally 3+ weeks with no success (kept getting disconnected after 2+ hours on hold), I decided to try it. It worked exactly as promised - I got a call back when an agent was on the line, and I was able to ask my specific questions about content creator deductions. The time and frustration it saved me was absolutely worth it.

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Oliver Fischer

•8M

I have to admit I was completely wrong about Claimyr. After dismissing it as BS here, I decided to try it myself as a last resort after getting disconnected by the IRS for the 5th time while trying to sort out my business expense questions. The service actually got me through to an IRS representative in about 45 minutes (I had been trying for WEEKS on my own). The IRS agent I spoke with was able to give me specific guidance on my situation - I'm a part-time photographer who sometimes streams editing sessions. Found out I was calculating my home office deduction all wrong and that I needed specific documentation for my equipment that's used both personally and professionally. Literally saved me from what would have been an audit nightmare. Sometimes I hate being wrong but I'm glad I gave it a shot.

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Emma Davis

•8M

I'm a tax accountant and I see this ALL THE TIME with influencers and streamers. Please be careful! The "put it on stream once and deduct 100%" strategy is exactly the kind of thing that triggers audits. The proper way is to track actual business use. If your horse appears in 25% of your content and is central to that content (not just in the background), you might justify deducting 25% of the expenses. But you better have excellent records showing the business purpose. Also, don't forget the hobby loss rules - if your "business" doesn't show a profit in 3 out of 5 years, the IRS presumes it's a hobby and can disallow ALL your deductions retroactively.

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Emma Davis

•8M

Yes, if she can demonstrate that featuring the horses meaningfully contributes to her income stream (through increased viewership, sponsorships specifically related to the horses, etc.), she could potentially justify a portion of the expenses. But she would need to document this connection and be able to show that the horses are a regular, integral part of her content. There is absolutely a "reasonableness test" too. The IRS looks at whether expenses are ordinary and necessary for your specific business, and whether they're reasonable in amount. A multi-millionaire streamer might be able to justify higher expenses than someone just starting out, but there are still limits. Deducting extremely luxury versions of business necessities often raises red flags.

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GalaxyGlider

•5M

As someone who's been doing freelance work for years, I can tell you the key is documentation and intent. The IRS doesn't care if you're a millionaire streamer or just starting out - the same rules apply to everyone. What matters is whether you can prove the expense has a genuine business purpose and you're operating with profit intent. For that streamer's horses, if she can show they're regularly featured in content, drive engagement/revenue, and she keeps detailed records of business vs personal use, then partial deductions could be legitimate. The biggest red flag I see with content creators is treating everything as 100% deductible just because it appears in content once. That's not how it works. If you use your gaming setup 70% for streaming and 30% for personal gaming, you can only deduct 70%. My advice: Keep meticulous records, be conservative with percentages, and don't get greedy. The IRS has gotten much better at auditing online creators in recent years.

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