Tax Deductions for Home Renovation and Interior Design Content Creator - What's Allowed?

Thanks for the explanation! I'm curious though - if she's filming content throughout the entire house (kitchen renovation one week, bathroom the next), does that mean she can deduct portions of each space? Or does it only work if there's a dedicated office space? Also, what kind of documentation would the IRS want to see to prove it's a legitimate business attempt vs. just a hobby?

For spaces used for both personal and business purposes, you can only deduct expenses based on the percentage of business use. If you're filming throughout the house, you wouldn't be able to claim the entire renovation costs - you'd need to determine a reasonable business-use percentage. The IRS is pretty strict about this. For documentation, keep detailed records of all business activities, expenses, and income. Create a formal business plan showing how you intend to become profitable. Maintain separate business accounts and credit cards. Track the hours you spend working on content creation. Consider getting necessary business licenses or permits. The IRS looks at nine factors to determine if an activity is a business, including whether you operate in a businesslike manner, your expertise, time invested, expectation of asset appreciation, success in similar activities, history of income/losses, occasional profits, your financial status, and elements of personal pleasure.

This sounds interesting! How exactly does taxr.ai work? Do they just give advice or do they actually help with filing? I'm in a similar situation but I'm doing bathroom renovations for my new home decor TikTok.

I'm skeptical about services like this - how do they determine what percentage is "for content" vs personal use? Seems like a gray area that could get you in trouble with the IRS. Did they give you specific guidelines on how to document everything?

They provide a detailed analysis of your specific situation and give you documentation you can use if you ever get audited. You upload your receipts, business plan, and content samples, and they break down exactly what percentage is deductible based on IRS guidelines. They don't file for you, but they give you all the information you need to file correctly. For determining the business percentage, they look at factors like dedicated equipment, specific modifications made for content creation, and how the spaces are used in your content. They gave me a spreadsheet to track everything and specific language to use on my Schedule C. They also helped me understand how to document dual-use spaces by tracking hours used for content creation versus personal use.

Wait, this actually works? I've been trying to get through to the IRS for almost a month about my Etsy business deductions. How does Claimyr actually get you through when nobody else can?

Sounds like a scam tbh. The IRS phone system is notoriously impossible to navigate. I find it hard to believe some service can magically get you through when millions of others can't.

It absolutely works! They use some kind of automated system that navigates the IRS phone tree and waits on hold for you. When they finally get a human, they call you and connect you directly to the agent. It's not magic - just clever technology that does the waiting for you. They can't help with what the IRS tells you, of course - they just get you through to an actual person who can answer your questions. Saved me literally hours of hold time and frustration. The agent I spoke with was super knowledgeable about content creator deductions specifically, which I wasn't expecting.

How bad was the audit? I'm terrified of getting one but I also don't want to miss out on legitimate deductions. Did you have to pay back a lot?

The audit itself wasn't terrible, but it was stressful and time-consuming. Had to provide documentation for everything claimed over a three-year period. They disallowed about 40% of my home improvement deductions because I couldn't adequately prove they were primarily for business use. I ended up paying about $3,800 in back taxes plus around $600 in penalties and interest. The worst part was having all my subsequent returns flagged for review for several years afterward. My advice: claim only what you can thoroughly document as business-necessary. Better to miss some potential deductions than trigger an audit that costs you much more in the long run.

I used TurboSelf-Employed last year for my craft blog. It does a decent job with basic business expenses but struggles with nuanced situations like renovations that have both personal and business use. It asks good questions about home office space but doesn't really get into detailed allocations for specific projects or renovations. If your situation is complicated, I'd recommend getting professional help at least for your first year. Once you have the structure set up, you might be able to use software in future years.

Thanks for the insight! I might try using it for my basic expenses and then consult with a pro specifically about the renovation deductions. Seems like that's the trickiest part to get right. Probably worth the investment to avoid problems down the road.