4. Your Startup Expenses Can Save You In Taxes
Did you know that shooting in your home or having an office can save you in taxes? You can deduct some money from your taxes by having a home office where you can film your vlog or web series. Also, if it’s your first time getting into YouTube, you can deduct up to $102,000 in business equipment such as computers, phones, copiers, etc. And yes, those two cameras for your web series are also considered a tax deduction since you make a living off creating video content.
5. Know About Some Interesting Deductions
Norris said that one deduction that production companies and creators often overlook is the production deduction.
“There are stringent rules for that, but you get an extra nine percent deduction to your gross income but you have to produce a product.” In order to qualify, Norris said that they have to generate income, have employees and the production must be made in the United States.
Other interesting items include getting a tax deduction should your YouTube project fail to see the light of day, and deductions on things like acting class, travel, business meeting meals and entertainment expenses. Rogers said that even the little expenses such as the “$5 tip for the valet to park your car when you’re running late for an audition or a business” are fair game for deduction but “you have to write these expenses as they occur or you’ll never remember them when it’s time to compile your taxes.”
When listing deductions for expenses like cell phone or a laptop, Rogers said it’s important to tell the IRS the percentage of use for business purposes and personal purposes.
See the myriad of business expenses you can deduct right here.
While these tips can be helpful in making it easy to save and pay your taxes, it is always best to consult your accountant or tax professional for more details.