The 5 Most Overlooked Tax Deductions for Content Creators

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Live webinar took place on 05-24-2022 @ 02:00 PM ET
Ro Williams, Speaker
Fran Gaither, Moderator

Are you getting the most out of your tax deductions? Did you know you can deduct things like bicycle commuting, parking & tolls, and professional club memberships? Learn all this and more during our 30-minute webinar with Ro Williams!

We want to create a community around small businesses, so at the end of the talk, we’ll open it up to live questions from attendees! Tell us about you, your business & what you want to know.

Ro Williams is the Tax Research Manager at ComplYant. She is an experienced tax professional and has previously worked for both International Law and Public Accounting firms.

Note: This topic covers U.S. business taxes only.

Q&A

How much money should I make before I start tracking?

The super important thing about carrying on a business trade is that you start tracking it as soon as you start it. That's why it's extremely important for you to have a business bank account that's dedicated to just that business because that's another way for you to file an audit. An audit looks at nine factors and one of those factors is how you are actually carrying on this business or trade. If you're carrying it on like it's a hobby and you don't have to put much care or time into it, if you're ever audited, then that's a reason for the IRS to deny each expense. And also, on top of that denial, you'll receive a penalty and interest. So, it's super important that if you start a business, you start acting as though it's a business the day you started, and maybe you don't start a business directly as a business. Remember the YouTube brother, he started it to help people, but that transitionary period where he decided Hey, I can actually make money off of this. During that period is when he definitely needs to set the tone that this is a business that I'm carrying on, it's a business and I'm taking care of it like a business owner would take care of their business.

Who is considered an employee? If my kids or friends help me record, do I have to consider them as employees or contractors?

To help record or shoot like if it's a photographer or videographer. And maybe you guys can write up an agreement showing like per each shoot, I would pay X amount. That would be a better way to say that this person is a contractor versus an employee. If the person already has a business and they shoot others around the way for different purposes, that's even more cause to say this person is a legitimate contractor. The issue with relations is it looks like you're trying to not pay taxes on an employee when it is someone closely related to you. So you can get issues with that. But if that person legitimately has a business and does this all the time, there shouldn't be an issue with considering that person a contractor.