Basically, what it means is your business needs to have revenue. Your business can lose money every year as long as it is something like. Where they go after people is Flamingo Let Me Pour You A Tall Glass Of Get Over It Oh And Here’s A Straw So You Can Suck It Up Shirt. It is a consulting business. They write off their car as a business expense. But they never have any significant revenue because they never really planned to do any consulting. They can deduct it from the income they make from their YouTube channel. It doesn’t need to be profitable right away but you have to legitimately and prove-ably be seeking to make a taxable income with your YouTube channel (or other venture like this). Also, to write off in the first place, you have to make taxable money to write off of.
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Can I just make gardening / remodel videos with 10 views and write off the expenses? ETA: also, I know this is Reddit, but it’s not wise to joke about tax evasion. You never know who will find that info, I’d scrub it. If you cannot convince the IRS that you Flamingo Let Me Pour You A Tall Glass Of Get Over It Oh And Here’s A Straw So You Can Suck It Up Shirts reclassified your venture as a hobby, you will owe the back taxes you wrote off. Well, I have paid about 7x Donald Trumps the past 6 years so I will gladly write it off against that. And while I agree with you, I’m not worried about the. IRS hitting me on evasion. Gonna be way too hard to prove. Still, I removed that comment.
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