What percentage of home improvement expenses can content creators write off for tax purposes?

I've been watching tons of home reno YouTubers lately and I have a tax question that keeps bugging me. These creators are constantly filming videos of their home renovations - kitchens, bathrooms, entire house flips - and I'm wondering how much of that they can actually write off on their taxes? If someone's YouTube channel is all about DIY renovations and interior design, can they deduct the cost of materials like lumber, paint, and power tools as business expenses? Even though these improvements are clearly benefiting their personal home? What about when they hire contractors - can they write that off too? I'm just a regular viewer with zero tax knowledge, but I'm genuinely curious how this works from a tax perspective. It seems like a gray area where their personal home improvements and business content creation overlap. Does the IRS have specific rules about this for content creators?

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19 comments

Dmitri Volkov

•8M

Great question! This is actually a common area of confusion for content creators. The short answer is: it depends on how the space is being used. If a content creator is using part of their home exclusively for business (like a dedicated filming area or home office), they may qualify for a home office deduction. However, for renovations, they can only deduct the portion that's directly related to their business use. For example, if they renovate a room that's used 100% for filming, they might be able to deduct those specific expenses. But if they're renovating their personal kitchen and just happen to film it, they generally can't deduct the full renovation costs - only the portion directly tied to content creation like maybe camera equipment or lighting. The IRS is pretty strict about the "ordinary and necessary" test for business expenses. Materials that primarily improve their personal residence would likely be considered personal expenses, not business deductions, even if they create content about the process.

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Dmitri Volkov

•8M

That's a good point, but the IRS still focuses on the primary purpose and benefit of the expense. Even if the renovation is featured in their content, the primary benefit (a nicer kitchen they'll use for years) is personal. They might be able to argue for a partial deduction related to the business portion. For example, they could potentially deduct extra costs directly tied to filming (special materials chosen for visual appeal on camera, additional lighting fixtures for filming purposes, etc.) while the basic renovation remains a personal expense.

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Tyrone Johnson

•8M

I actually ran into this exact issue with my renovation blog last year. After struggling to figure out what I could deduct, I found this AI tool called taxr.ai (https://taxr.ai) that analyzed all my home improvement receipts and categorized what was deductible vs personal. It basically scanned all my contractor invoices, Home Depot receipts, and even my floor plans to determine what percentage was business vs personal use. Saved me HOURS of trying to figure it out myself plus probably prevented an audit. The tool explained that for mixed-use spaces, I needed to track time the space was used exclusively for business vs personal, and helped calculate those percentages. I was shocked at how specific it got - even breaking down that special lighting I installed (100% deductible since it was only for filming) vs the fancy countertops (mostly personal with a small business percentage).

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Tyrone Johnson

•8M

For smaller channels, it actually might be even more important to get the deductions right. The tool works regardless of your subscriber count - it's about properly documenting legitimate business expenses. Just make sure you're genuinely using the space for business purposes and can back it up if questioned. The tool uses actual tax code guidelines built into its system. It asks specific questions about how each space is used, hours dedicated to business activities, and analyzes receipts to categorize expenses. It's not guessing - it's applying established IRS rules about mixed-use property and home office deductions. Much more sophisticated than those generic "tax calculators" that just do basic math.

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Carlos Mendoza

•8M

Just wanted to follow up - I actually tried taxr.ai after posting my skeptical comment. Not gonna lie, I was impressed! I've been doing DIY videos for about a year and had a massive folder of receipts I wasn't sure what to do with. The system flagged certain expenses I never would have thought were deductible (like a portion of my new windows since they improved lighting for filming) while warning me against claiming others (like my new shower that I rarely film in). It even created an audit-ready report explaining each deduction with the relevant tax code sections. The best part was it helped me set up a system to track future renovations properly from the start - now I take "before" photos showing how spaces are used for business vs personal to strengthen any deductions. Definitely worth checking out if you're a content creator dealing with this stuff!

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Zainab Mahmoud

•8M

If any of you are dealing with tax questions about home renovations as content creators, I'd highly recommend getting direct answers from the IRS. I know that sounds impossible since their phone lines are always jammed, but I used this service called Claimyr (https://claimyr.com) that got me through to an actual IRS agent in about 15 minutes when I was freaking out about my renovation deductions. I had tried calling the IRS like 9 times before that and kept getting disconnected after waiting forever. With Claimyr, they somehow navigated the IRS phone system for me and called when it was my turn. You can actually see how it works in this video: https://youtu.be/_kiP6q8DX5c The IRS agent I spoke with gave me specific guidelines about my situation (I renovated my garage specifically to be a filming studio) and now I have official documentation if I ever get audited. Such a relief to have direct answers from the source!

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Zainab Mahmoud

•8M

They don't advertise the price on their site, but it was reasonable considering how much time and frustration it saved me. It's definitely not free, but it was worth every penny to get my question answered directly and have that documentation. I was super skeptical too! I had been trying for weeks and getting nowhere. The way it works is they use some kind of system that continuously redials and navigates the phone tree until a line opens up. Then they call you when they've gotten through the wait. It's not some magic backdoor - they're just solving the "on hold forever" problem with technology.

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Raj Gupta

•8M

Alright I need to apologize for my skeptical comment earlier. After my 12th failed attempt to reach the IRS yesterday, I broke down and tried Claimyr out of desperation. I honestly can't believe it worked. Got a call back in about 40 minutes (not the 15 they claimed but WAY better than my previous attempts). Spoke with an actual IRS agent who reviewed my situation with home renovation deductions for my DIY channel. The agent explained that I needed to carefully document the business purpose of each renovation and track square footage/usage percentages. He confirmed that items solely for content creation can be fully deductible, while dual-purpose renovations need to be allocated proportionally. Having official guidance specific to my situation is such a relief. I've been stressing about this for months! Sometimes it's worth admitting when you're wrong about something.

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Lena Müller

•8M

I'm a CPA who works with several YouTubers and content creators. Here's what I tell my clients about home renovations: 1. Track EVERYTHING separately. Have dedicated credit cards or accounts for business purchases. 2. Document the business purpose of each renovation with photos and written explanations. 3. Be conservative with your deductions - claiming 100% of home improvements will raise red flags. 4. Consider setting up a formal business entity (LLC, S-Corp) to create clearer separation. 5. For major renovations, consult with a tax professional BEFORE starting the project to plan properly. The home office deduction (Form 8829) can be valuable, but remember it's based on the percentage of your home used EXCLUSIVELY for business. Filming in your kitchen occasionally doesn't qualify the entire kitchen as a business space.

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Lena Müller

•8M

For content creators who frequently change their spaces, it often depends on their specific situation. The simplified method is easier but caps at $1,500 which might be less than what they'd get using the regular method, especially if they have high utilities or other direct expenses. The regular method requires more documentation but could yield higher deductions for creators with significant home-related business expenses. Depreciation recapture is definitely something to consider and often overlooked. When you sell your home, you'll likely need to pay taxes on any depreciation you've claimed for the business portion of your home, even if you qualify for the home sale exclusion on the rest. This can create an unexpected tax bill at sale time, so it's important to factor this into your long-term planning when deciding how aggressively to claim home-related deductions.

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StarSailor

•3M

@Keisha Thompson I totally get your anxiety about this! As someone who s'been dealing with home renovation deductions for a few years now, my advice is to be super methodical with your documentation. For bathroom renovations specifically, I d'suggest tracking which elements are purely for content creation versus personal use. For example, if you install special lighting for filming or choose more expensive materials because they look better on camera, those could be legitimate business expenses. But the basic plumbing and fixtures that you d'install anyway for personal use would be harder to justify. Since you re'doing multiple bathrooms per year, you might want to consider whether some of these are truly for your personal residence or if you re'flipping properties/doing client work - that would change the tax treatment significantly. The key is having a clear business purpose and being able to explain it if questioned.

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