Just a tiny bit of revenue like 5 years after lets you take tax deductions for consumptive spending related to things you’re interested in
More accurately it shields you from adverse outcomes in the future audit, since you can report whatever you want its more about winning an audit if you get picked
Might as well form an LLC for every niche you spend money on, damn near everything is tax deductible
Not tax advice, consider everything here apocryphal, YMMV
My understanding is that it’s only deductible against the relevant earnings. So if I can avoid paying taxes on $10 of YouTube earnings by claiming my gaming PC as an expense and getting a non-refundable $500 tax credit……I’ve still only saved $2 on my taxes by adjusting that $10 of earnings down to $0.
If the expense exceeds your business income, you may have a net loss for your business, which could potentially be used to offset other taxable income on your tax return.
as always it depends on the deduction and business and other things, but also the exception makes the rule. as in, once you find the exception, only do that.
Just a tiny bit of revenue like 5 years after lets you take tax deductions for consumptive spending related to things you’re interested in
More accurately it shields you from adverse outcomes in the future audit, since you can report whatever you want its more about winning an audit if you get picked
Might as well form an LLC for every niche you spend money on, damn near everything is tax deductible
Not tax advice, consider everything here apocryphal, YMMV