Influencers and content creators who earn income (or business profits) through social media platforms - like YouTube, Instagram, TikTok, and Twitch - can also deduct business expenses that are directly associated to the business. In turn, this will reduce your tax balance owing to the Canada Revenue Agency (“CRA”) at the end of the year.
If you travel in order to earn business income, your related expenses are likely deductible. Examples of related travel expenses may include lodging (hotel rooms, Airbnb rentals, etc.), transportation (flights, train tickets, public transit fare, ride sharing apps, car rentals, etc.), and meals (dining at a restaurant, ordering take out, etc.) If the expense is related to travel for earning business income, it is considered deductible.
For social media influencers, your phone and internet plans are essential for earning business income. The good news is that any business-related phone, internet, and data-usage bills are deductible.
Should you need to purchase clothing or get embellished for a show, a portion of the glam expenses can be deducted.
If you pay for any services or applications that you require to earn business income, the subscriptions are deductible as a business expense. These include everything from photo editing tools (Facetune, VSCO, etc.), webcasting subscriptions (Turbo Twitch, YouTube Partner Program, etc.) and even items purchased within an app or game.
Advertisements and paid posts on platforms like YouTube, Instagram, and TikTok to promote your brand are deductible.
Any purchased stationary supplies (i.e.: pens, paper, printer ink, envelopes, etc.) required to run your business are deductible.
Filming a special guest interview and need to buy a desk or couch for the shoot? In those scenarios, the pieces of furniture are considered capital items and can be written-off by the business.
If you are required to purchase a computer and/or monitors in order to run your business, these items should be capitalized to the business.
The cost of purchasing branded clothing that you bring to shows or sell online are deductible.
Hang on to your dining receipts! Meals and entertainment may be 50 per cent deductible. This includes occasions like taking colleagues out for dinner or purchasing event tickets (i.e.: sports, concert, etc.) to promote your brand.
If you are required to hire a manager, editor, or assistant in order to help you earn business income, their costs are considered business expenses and can be deducted.
Bringing in a proactive team of professionals is essential to any influencer’s success. The good news is that your accounting, legal, and consulting fees are all deductible in the business.
If you need to purchase insurance for your business, this is considered a deductible expense.
Want to thank a member of your team with a gift? Since the gift is considered to be a business expense, the cost can be deducted.
Paying rent for office space or filming studio is considered to be deductible.
If you work out of your home and have a dedicated space that you use to earn business income, you are allowed to claim a portion of your home expenses that included, but not limited to:
If you are an influencer that meets with people, or a food blogger that needs to drive to a restaurant, you can deduct a portion of your vehicle expenses for business purposes such as:
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