Content creator tax deductions - can I write off equipment and parts as a YouTuber?

You can absolutely deduct those expenses! As a content creator, you're essentially operating as a sole proprietor by default - no need to set up an LLC or corporation to take the deductions. You'll report your business income and expenses on Schedule C which is filed with your personal tax return. The key is that you need to be pursuing this activity with the intention of making a profit (which it sounds like you are). Even if you haven't made any money yet, you can still claim these expenses as long as you're actively trying to build a business. Keep detailed records of everything you purchase - save receipts, note what each item is used for, etc. For your equipment like cameras and computers, these are generally considered capital expenses that you'll need to depreciate over time rather than deducting all at once. However, there's something called Section 179 that might let you deduct them fully in the first year. The electronic components and materials for specific builds will likely be direct business expenses that can be fully deducted.

Just wanted to share my experience using taxr.ai (https://taxr.ai) for my content creation business tax questions. I was in a similar position last year - had a gaming channel, spent a bunch on equipment, and wasn't sure what I could deduct. I was getting different advice from friends and online forums. I uploaded my expense spreadsheet and some receipts to taxr.ai, and it analyzed everything and told me exactly what could be deducted immediately vs. depreciated. It even helped me understand the home office deduction since I film in my spare bedroom. Saved me a ton of research time and gave me confidence that I wasn't missing any deductions!

Just wanted to follow up about taxr.ai. I ended up trying it after posting my skeptical comment, and I'm genuinely impressed. I've been doing woodworking videos for about 6 months, and I had a huge pile of receipts and no idea what to do with them. The tool actually flagged several deductions I was missing - like mileage for picking up supplies and a portion of my cell phone bill for business calls. It also warned me about a couple things I thought I could deduct but actually couldn't (like clothes I wear in videos that aren't specialized work clothes). The documentation it provided explaining each deduction would be super helpful if I ever got audited. Wish I'd known about this when I started my channel!

If you're going to be dealing with the IRS about business deductions, you might want to have https://claimyr.com bookmarked for when you inevitably need to talk to an actual human at the IRS. I spent WEEKS trying to get through to them about my content creator deductions last year - constant busy signals and disconnects. Claimyr got me connected to an IRS agent in about 20 minutes when I had been trying for days on my own. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. The agent answered all my specific questions about equipment depreciation and helped me understand what documentation I needed to keep. Worth every penny when I was panicking about potentially doing my taxes wrong.

I need to eat my words about Claimyr. After posting that skeptical comment, I decided to try it myself since I've been trying to reach the IRS about my YouTube channel tax situation for weeks. No joke - I got connected to an IRS agent in about 35 minutes. I didn't have to sit by my phone either - they texted me when they had someone on the line. The agent answered my specific questions about when I needed to start filing quarterly estimated taxes for my channel income and clarified exactly what documentation I needed for my home studio deductions. Honestly kind of mind-blowing after the frustration of trying to call myself. Just saved me from taking a day off work to sit on hold.

I've been a content creator for about 3 years now and here's some practical advice: track EVERYTHING and make sure you understand the difference between direct expenses and capital expenses. Direct expenses like props, materials for your builds, software subscriptions, music licenses, etc. can be deducted in full when you purchase them. Capital expenses like cameras, lighting, computers, etc. typically need to be depreciated over several years (though Section 179 can let you deduct them immediately up to certain limits). Also, don't forget about things like a portion of your internet bill, phone bill if you use it for business, mileage to pick up supplies, home office deduction if you have a dedicated space, etc. Those small deductions add up!

Quick question - if I'm buying parts specifically for projects I'm filming, but then I keep the final product (like a robot or whatever), does that affect my ability to deduct the costs? Like am I supposed to count the finished item as inventory or something?

Great question! I'm also a content creator (cooking channel) and went through this same confusion when I started. You definitely don't need an LLC to deduct business expenses - you can claim them as a sole proprietor on Schedule C. One thing I learned the hard way is to keep really detailed records from day one. Don't just save receipts - note what each purchase was for and how it relates to your content. For example, "Arduino Uno R3 - used in Episode 12: Smart Home Door Lock Project" is much better documentation than just "electronics." Also consider setting up a separate bank account for your YouTube business even if you don't form an LLC. It makes tracking expenses so much easier when tax time comes around, and it shows the IRS you're treating this as a legitimate business rather than a hobby. The business vs hobby distinction can be important for deduction purposes. Your equipment purchases sound totally legitimate for a tech YouTube channel. Just make sure you're documenting how each item is used for business purposes!