YouTube and Tax Question

**UnknownXV** · 01-05-2013, 01:03 PM

If you treat this as a business, I think you can yes. Although it gets murky if you use it for personal purposes after you use it for business first. On that I am not exactly certain how it works. If you use it mainly for editing, processing, uploading your videos, etc... absolutely.

**siggy_freud** · 01-05-2013, 01:29 PM

Originally posted by skives View Post

So I have a Youtube channel for almost three years now. In 2012 I was allowed to have ads put on my videos so I could make money from them from Adsense. I do technology unboxings and reviews. Some products are lent to me from companies and others I buy myself. I am wondering if the ones I buy can I claim them on my taxes? Like I recently purchased a brand new Apple iMac. Any information on this topics would be helpful.

If you use it exclusively for business and its justifiable, yes. Then you also have to start depreciating the asset.

But you can't just buy it, claim it as a write-off, and use it for whatever (at least legally).

**disneysteve** · 01-05-2013, 02:22 PM

Originally posted by siggy_freud View Post

If you use it exclusively for business and its justifiable, yes. Then you also have to start depreciating the asset.

Even if you don't use it exclusively for business, you can deduct a portion of it. When I was actively selling on ebay, I deducted a portion of my internet access fee and other related expenses. Obviously, I used the internet for other non-business purposes, but I was able to claim part of it for business use.

**skives** · 01-05-2013, 02:43 PM

Would this be in the dectution section where it needs to add up to more than the standard dectution or its not worth it or is it something that's done on a different form. I just don't want to get this wrong since my dealing with the IRS.

**disneysteve** · 01-05-2013, 02:52 PM

Originally posted by skives View Post

Would this be in the dectution section where it needs to add up to more than the standard dectution or its not worth it or is it something that's done on a different form. I just don't want to get this wrong since my dealing with the IRS.

This would be on your business return, not your personal return. It is schedule C, Profit or Loss from Business. The standard deduction is on your personal return.

**skives** · 01-12-2013, 01:00 PM

Originally posted by disneysteve View Post

This would be on your business return, not your personal return. It is schedule C, Profit or Loss from Business. The standard deduction is on your personal return.

Is this something I have to claim? I know I have to claim the income from Adsense but do I have to claim my expenses? I actually spent more than I made this year off it because I am just getting started. Is there going to be a big addition to my refund for claiming my expenses?

**disneysteve** · 01-12-2013, 01:51 PM

Originally posted by skives View Post

Is this something I have to claim? I know I have to claim the income from Adsense but do I have to claim my expenses?

Why wouldn't you want to take the deductions? They help offset the income and reduce what you have to pay in taxes.

**skives** · 01-12-2013, 03:02 PM

Originally posted by disneysteve View Post

Why wouldn't you want to take the deductions? They help offset the income and reduce what you have to pay in taxes.

I just don't know exactly how to fill out the Schedule C form. I am afraid I will fill stuff out in the wrong spot.

**disneysteve** · 01-12-2013, 04:03 PM

Originally posted by skives View Post

I just don't know exactly how to fill out the Schedule C form. I am afraid I will fill stuff out in the wrong spot.

That's what accountants are for.

**skives** · 01-13-2013, 02:21 AM

Originally posted by disneysteve View Post

That's what accountants are for.

I use Turbo Tax online edition

**disneysteve** · 01-13-2013, 03:59 AM

Originally posted by skives View Post

I use Turbo Tax online edition

And if your tax situation is sufficiently complex that you aren't comfortable doing it yourself, it may be time to consider hiring a professional. What you are saving by using Turbo Tax might not be worth it if you are losing valuable deductions.

**SnoopyCool** · 01-13-2013, 05:25 AM

You should use a Schedule C to claim both income and deductions.

If you feel confident enough to try on your own, you can fill out your taxes and then take them into an H&R Block to have someone do a 2nd Look on them - for free. I suggest going to one of their premium offices for this service. That's where the bulk of their accountants and EAs are employed. You can ask to see one of those types of professionals.

I should note that I worked for Block, but am on hiatus from them this year due to having a baby.

**rs1248** · 01-16-2013, 10:05 AM

I agree you should definitely consult a professional. I am not saying you would intentionally do anything illegal but by doing this yourself you may accidentally do something wrong which is illegal and create more trouble and lost money than if you had just ponied up the cash for a professional tax specialist in the first place. I personally love my accountant/tax person and he's worth every penny, mind you I'm not swimming in money either. He even went as far as to become a certified tax specialist from the institute of business and finance which, I feel, has put him ahead of the learning curve compared to the advisers my friends have.

**sblatner** · 01-16-2013, 01:24 PM

I don't think you would have to depreciate the asset. There is something called Section 179 which lets you take a deduction in one year (opposed to taking it over several years). I would suggest that you have an accountant do it the first year (or at least review it depending on how you feel) and then when you have a sample from 2012, you might be able to do following years on your own.

YouTube and Tax Question