As a social media content creator, you may be able to write off certain expenses related to your content, even if you haven't generated income yet. The IRS considers content creators as self-employed individuals, which means you can deduct business expenses that are ordinary and necessary for your business.
Business Expenses
- You can write off expenses such as equipment, software, subscriptions, training, and other costs directly related to creating and promoting your content.
- You don't necessarily have to post each individual piece of content to write off related expenses. However, you should be able to demonstrate that the expenses are directly related to your business activities. For example, if you purchase a new camera to create content, you should document how that camera contributes to your content creation.
- If you work from home, you can claim a home office deduction, which allows you to write off a percentage of your rent, mortgage interest, property taxes, qualified mortgage insurance premiums, and home insurance as business expenses.
- If an expense is used for both personal and business purposes, you can only deduct the portion that is used for your business. For instance, if you use a computer for both personal use and content creation, you can only deduct the percentage of its use that is for business.
Documentation
It's important to keep detailed records of all your expenses, including receipts and a log of how each expense is related to your business. This will help you substantiate your deductions if needed.