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Ashley Adams

Content creator tax deductions/write-offs for equipment and engineering parts

So I've been working on building up a YouTube channel focused on engineering projects and tech builds (kind of along the lines of Michael Reeves or Stuff Made Here). I've already dropped probably $2,000 on equipment, electronics components, and various materials for projects. This isn't just a hobby - I'm really trying to build this into something that generates revenue, though I'm only at around 800 subscribers right now. I'm wondering what I can actually deduct on my taxes? Can I write off things like Arduino boards, servos, 3D printer filament, cameras, and other equipment I'm using specifically for making content? Also, I don't have any formal business structure set up yet - I'm just a regular person trying to make cool videos. Do I need to establish an LLC or something before I can take tax deductions, or can I just claim these expenses on my personal tax return somehow? I've heard something about Schedule C but I'm honestly confused about the whole process. Any advice would be super helpful!

Yes, you absolutely can deduct business expenses related to your content creation, even without a formal business structure! What you're describing is operating as a sole proprietor, which is the default business structure when you start earning money without forming an LLC or corporation. For your equipment and engineering parts, these would generally be deductible as ordinary and necessary business expenses on Schedule C of your personal tax return. This includes your Arduino boards, servos, 3D printer filament, and other materials directly used in creating your content. For more expensive equipment like cameras, 3D printers, or computers, you may need to depreciate these over several years rather than deducting the full cost in one year (though there are exceptions like Section 179 deduction that might allow immediate write-offs). The key thing the IRS looks for is whether you're operating with a profit motive. Since you're actively trying to monetize your channel and grow your subscriber base, that works in your favor. You'll want to keep detailed records of all expenses with receipts, and clearly document how each purchase relates to your content creation business.

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Aaron Lee

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This is really helpful. But what if I'm not making any income from my channel yet? Can I still deduct expenses if I'm not profitable? And is there some minimum subscriber count I need to hit before the IRS considers it a "real business"?

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You can absolutely deduct expenses even if you're not profitable yet. The IRS generally allows for startup phases where businesses operate at a loss, especially in the first few years. There's no minimum subscriber count required - what matters is your intention to eventually make a profit and that you're treating your activities like a business (keeping records, working regularly on content, having a business plan, etc.). If you show losses for more than 3 out of 5 consecutive years, the IRS might consider your activity a hobby rather than a business (called the "hobby loss rule"), which would limit your deductions. But many legitimate businesses take time to become profitable, especially content creation where building an audience is a long-term process.

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After struggling with similar tax questions for my DIY electronics channel, I found an AI tool that actually helped me figure out what I could deduct. Check out https://taxr.ai - it analyzed all my expenses and categorized them properly for my Schedule C. I uploaded my receipts and purchase history, and it quickly identified what qualified as ordinary business expenses versus what might need to be depreciated. It even flagged some items I wasn't sure about (like my partially-personal-use laptop) and explained exactly how to calculate the business percentage. Saved me hours of research and probably found deductions I would've missed!

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Michael Adams

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Does it work with business credit card statements too? I've got hundreds of purchases from Amazon and electronics suppliers, and I'm terrible at keeping individual receipts.

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Natalie Wang

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I'm skeptical about AI tax tools. How accurate is it really? Last thing I need is to get audited because some algorithm told me I could write off my entire gaming PC that I occasionally use for video editing.

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It absolutely works with credit card statements! You can connect your accounts or upload statements directly, and it categorizes everything automatically. It's especially good with Amazon purchases - it can even detect what items were business vs. personal based on the product categories. For partial-use items like computers, it actually walks you through the proper way to calculate business percentage use. It doesn't just blindly tell you to write everything off - it asks questions about how often you use equipment for business vs. personal, then calculates the appropriate deductible percentage based on IRS guidelines.

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Natalie Wang

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I need to follow up about my skepticism with https://taxr.ai - I decided to try it despite my doubts and wow, was I wrong! It actually flagged several expenses I was planning to fully deduct and explained I needed to calculate partial business use instead. For my gaming PC that I also use for video production, it walked me through calculating exactly what percentage was deductible based on my usage patterns. The tool also identified several deductions I had completely missed - like my home internet (partial deduction), cloud storage for video files, and even some software subscriptions I didn't realize qualified. It saved me way more than I expected while keeping everything legit. Definitely using this for my 2025 taxes!

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Noah Torres

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If you're trying to get clarification from the IRS about specific deductions, good luck getting through to them on the phone! I spent WEEKS trying to reach someone last year about my content creation deductions. Finally found this service called https://claimyr.com that got me through to an IRS agent in under 25 minutes when I'd been trying for days. They have this whole system that navigates the IRS phone tree and holds your place in line, then calls you when an agent is about to answer. You can see how it works in their demo video: https://youtu.be/_kiP6q8DX5c Once I finally talked to an actual IRS agent, I got confirmation that my camera gear, editing software, and even partial home internet expenses were legitimate deductions for my YouTube business. Totally worth it because I was stressing about potentially doing something wrong on my taxes.

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Samantha Hall

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How does this service actually work? Seems too good to be true that they can somehow get through when regular people can't.

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Natalie Wang

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Yeah right. The IRS phone system is completely broken. I find it hard to believe any service could actually get through when millions of taxpayers can't. Sounds like another service promising the impossible.

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Noah Torres

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It works by using automated technology to navigate the IRS phone system and hold your place in line. They basically have a system that handles all the waiting and menu navigation, then alerts you when an agent is about to come on the line. It's not skipping the queue - you're still waiting your turn, but their system is doing the waiting for you. The reason it's effective is because most people give up after being on hold for 30+ minutes. Their system never gives up, so it eventually gets through when a line opens up. And they only charge if they actually connect you with an agent, so there's no risk if for some reason it doesn't work.

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Natalie Wang

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I have to eat my words about Claimyr too. After spending 3+ hours on hold with the IRS trying to get clarity about my content creation expenses, I got frustrated and tried https://claimyr.com. Less than 40 minutes later, I was speaking with an actual IRS representative! The agent walked me through exactly how to document my YouTube equipment purchases and what form to use for depreciation of my camera gear. They confirmed my home studio space could qualify for a home office deduction since it's used exclusively for filming. This call literally saved me thousands in deductions I was going to skip because I wasn't sure if they were legitimate. The peace of mind alone was worth it.

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Ryan Young

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Don't forget streaming subscriptions if you're reviewing content! I deduct my Netflix, Disney+, etc. since I make review videos. Also, if you're filming at home, you might qualify for the home office deduction for the space used exclusively for your YouTube activities. My tax guy says documenting everything is key - take photos of your workspace and keep a log of what equipment is used for which videos.

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Ashley Adams

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Thanks for mentioning the streaming services - I hadn't even thought about that! I do occasionally break down scenes from movies to explain the engineering concepts they got wrong. For the home office deduction, does it matter if it's just a corner of my living room with my filming setup, or does it need to be an entirely separate room?

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Ryan Young

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For the home office deduction to work properly, the space needs to be used exclusively for your business. A corner of your living room is trickier because it's not exclusively a business space. The IRS really looks for a separate area that's only for business use. What some content creators do is create a clearly defined studio space, even if it's within a larger room, and ensure that particular area is only ever used for content creation. Taking photos that show the clear boundary between personal and business space can help document this. Just be aware that the home office deduction is one that can trigger extra scrutiny, so make sure your documentation is solid.

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Sophia Clark

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Quick tip for new content creators: Start tracking everything NOW even if you think you won't make money for a while. I missed out on thousands in deductions my first year because I didn't save receipts for my early equipment purchases. The IRS allows deductions for startup costs even before you make your first dollar!

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Do you use any specific software or apps to track your expenses? I'm terrible at keeping physical receipts and wondering if there's a better system.

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