Tax scam or legit? Starting a "business" to write off luxury purchases like a Lamborghini through YouTube

So I just watched this video where this guy was claiming you can basically write off almost anything on your taxes by starting a "side business." He says the IRS won't consider it a hobby - it's a legit business expense. His example was buying a freakin' Lamborghini and writing it off by starting a YouTube channel where you just film yourself driving around in it. I'm not trying to commit tax fraud lol but it seems like a massive loophole if true. Does this actually work? Like could I buy expensive camera equipment and claim I'm starting a photography business even if I don't make any money? Or is this guy just setting people up to get audited? Has anyone tried something like this before? What's actually legit when it comes to writing off business expenses vs. hobby expenses? The whole "it's not a hobby, it's a business" thing seems sketchy as hell.

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18 comments

Clarissa Flair

•8M

This is a common misconception that can get people in serious trouble with the IRS. The IRS has specific criteria to determine whether an activity is a legitimate business or just a hobby, and simply declaring something a "business" doesn't make it one. For an activity to be considered a business rather than a hobby, you need to show a profit motive and operate in a businesslike manner. The IRS applies what's called the "hobby loss rule" and considers factors like: whether you conduct the activity in a professional manner, the time and effort you put into it, your expertise, your history of income or losses, and your reasonable expectation of profit. If you buy a Lamborghini and start a YouTube channel but don't seriously try to make it profitable, the IRS will likely classify it as a hobby. And hobby expenses are only deductible to the extent of hobby income - meaning no write-offs that create losses against your other income.

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Clarissa Flair

•8M

There's no specific income threshold that automatically makes something a business. What matters is that you're genuinely trying to make a profit and operating in a businesslike manner. This means keeping separate business records, having a business plan, putting in consistent time and effort, and making decisions that demonstrate you're trying to be profitable. The IRS generally looks at a pattern of profitability. If your activity generates a profit in at least 3 out of 5 consecutive years, it's presumed to be a business. But failing to meet that doesn't automatically make it a hobby - it just means you might face more scrutiny.

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McKenzie Shade

•8M

This sounds exactly like what I was struggling with last year! I spent thousands on camera equipment for my "photography business" but barely made any money. My tax guy was really worried about me getting flagged by the IRS. Then I found this AI tax tool at https://taxr.ai that actually analyzes all your business expenses and tells you which ones might trigger an audit based on your business type and income level. It helped me understand what's reasonable to claim and what's pushing it. Definitely worth checking out if you're in that gray area between hobby and business.

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McKenzie Shade

•8M

It gives you very specific feedback on expense categories that look disproportionate to your revenue. For example, it flagged that my equipment purchases were 400% higher than typical for photography businesses in my revenue bracket and suggested spreading purchases over multiple years. The system uses data from thousands of tax returns and IRS audit patterns. It's not just guessing - it shows you typical expense ratios for your industry and how yours compare. It even helped me document things better by suggesting what kinds of records would strengthen my case for legitimate business use.

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Rudy Cenizo

•8M

I was super skeptical about AI tax tools but decided to try https://taxr.ai after reading about it here. Honestly blown away by how helpful it was. I've been running a small consulting business and wasn't sure if I could write off my home office renovation. The tool immediately identified that my renovation expenses were way out of proportion for my business income, but then helped me separate the legitimately deductible portions (dedicated office space) from the personal use areas. Saved me from claiming about $12,000 in questionable deductions that would have definitely triggered a review. The best part was it actually explained WHY certain expenses were risky rather than just saying yes or no. Much more detailed than what my accountant told me!

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Natalie Khan

•8M

If you're having trouble getting straight answers from the IRS about business vs hobby classification, just call them directly. Oh wait... you'll be on hold for 3+ hours if they even answer at all! I wasted so much time trying to get clarification on this exact issue until I found https://claimyr.com - they get you to a real IRS agent usually within 15 minutes instead of waiting for hours. You can see how it works at https://youtu.be/_kiP6q8DX5c. Got my questions about business classification answered directly from the source.

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Natalie Khan

•8M

They use a combination of technology and timing. The service basically keeps dialing and navigating the IRS phone tree automatically until it gets through, then connects you when a live agent is reached. It's like having someone call repeatedly for you but with automation. They don't have any special access or relationship with the IRS - they're just using technology to handle the frustrating part of the process. It's completely legitimate and transparent about how it works. The IRS is just severely understaffed which creates these ridiculous wait times for everyone.

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Sienna Gomez

•8M

I called BS on this Claimyr service but was desperate after waiting on hold with the IRS for 2+ hours three days in a row. Decided to try it as a last resort to get answers about my "business" expenses for my YouTube channel. I was connected to an actual IRS agent in about 12 minutes. The agent walked me through the specific criteria they use to evaluate whether something is a business vs. hobby. Turns out my situation was much more nuanced than I realized, and I learned I needed to document my "intent to profit" much more carefully than I had been. Saved myself from claiming some questionable deductions that would have definitely caused problems. Worth every penny just for the peace of mind.

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Kirsuktow DarkBlade

•8M

That Lamborghini example is actually terrible tax advice. The tax court has repeatedly ruled against luxury vehicle deductions when they're excessive for the needs of the business. Even if you have a legitimate business, expenses must be "ordinary and necessary" - a Lambo is neither for most businesses. Look up the "Wellburn Yacht" case where a guy tried to deduct a yacht as a business expense and got hammered. Or the dentist who tried to write off his Corvette as a business vehicle. These are famous tax court cases because they're such obvious examples of pushing the limits.

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Kirsuktow DarkBlade

•8M

That's a good question. For established influencers with substantial income from content specifically about luxury vehicles, there might be a legitimate case. However, the burden of proof would be extremely high. You'd need to show the direct connection between the specific vehicle and revenue generation, demonstrate that the entire vehicle (not just a portion) is used for business, and prove that the expense is reasonable relative to your business income. Most importantly, you'd need to show a history of profitability or a reasonable path to profitability. Starting from zero with a huge expense like a Lamborghini would be extremely difficult to justify to the IRS.

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