Phones and Phone Accessories
The US tax code allows businesses to write off and expense the technology they use to conduct business, and the overwhelming majority of influencers are using their phone for work – many of them even using it as a digital “base of operations” to run their whole influencer empire.
Clothing, Accessories, and Beauty Products
Pretty much anything and everything used for a review or used as a “custom” or “uniform” as an influencer can also be expensed, including things sent to you from partners or third-party vendors.
Creation Tools and Software
Influencers spend a lot of time, a lot of energy, and a lot of money shooting and producing high-quality visual content (and some dive headfirst into the world of podcasting, too). All of the tools and technology used in the production and creation of that content – including all software – can be written off by influencers when tax time rolls around.
Website Expenses
Influencers can also deduct all website expenses – including web design work, web editing work, templates, hosting fees, plug-ins, media licenses, etc.
Marketing and Advertising Costs
Influencers that spend money to market and advertise to grow and promote themselves can deduct these expenses. Potential deductions include money spent on Facebook ads, Google ads, and any other online or off-line marketing – all of which can be deducted during tax season.
… And That’s Just the Tip of the Iceberg!
At the end of the day, the expenses we highlighted above are only just some of the deductions that might be available to you. With years of experience in entertainment accounting and tax preparation, Robert Hall & Associates has worked with numerous actors, models, agents, directors, writers, and publishers to increase profitability and decrease liability. We are now offering this same knowledge to influencers.
Robert Hall & Associates has been offering professional tax preparation and tax accounting services to individuals and businesses in California since 1971. Over that time, we have grown from a single person firm to California’s best and most trusted tax firm, processing more than 10,000 tax returns annually.
It’s critically important for social media influencers to reach out and work with competent, experienced, and successful tax preparers. This is all the more important as an influencer starts making real money online.
Without the kind of insights professionals such as ourselves bring to the equation, influencers can be left with unexpected tax liabilities that can really mess up their life – a fact which has unfortunately been the case with many other actors, musicians or other entertainers who lacked proper guidance and support.
If you are looking for a better tax preparation service, tax consulting or tax advice, we invite you to see the Robert Hall & Associates difference for yourself. Call us at 818.583.8524 or fill out our contact us form to schedule a free consultation. We look forward to exceeding your highest expectations.