Tax Deductions for Influencers and Content Creators

Alana Engelberg
Article
| 3/7/2022

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.

Content Creators

Travel
TravelIf 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.
Phone and internet
Phone and InternetFor 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.
Clothing, cosmetics, and hair care
MakeupShould you need to purchase clothing or get embellished for a show, a portion of the glam expenses can be deducted.
Subscriptions and applications
SubscriptionsIf 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.
Advertising
AdvertisingAdvertisements and paid posts on platforms like YouTube, Instagram, and TikTok to promote your brand are deductible.
Office supplies
Office SuppliesAny purchased stationary supplies (i.e.: pens, paper, printer ink, envelopes, etc.) required to run your business are deductible.
Furniture and equipment
FurnitureFilming 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.
Electronics
ElectronicsIf you are required to purchase a computer and/or monitors in order to run your business, these items should be capitalized to the business.
Merchandise
MerchandiseThe cost of purchasing branded clothing that you bring to shows or sell online are deductible.
Meals and entertainment
MealsHang 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.
Assistants, editors, and managers
HiringIf 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.
Professional fees
Professional FeesBringing 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.
Insurance
InsuranceIf you need to purchase insurance for your business, this is considered a deductible expense.
Gifts
GiftsWant 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.
Rent
RentPaying rent for office space or filming studio is considered to be deductible.
Home office

Home officeIf 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:

  • Home phone and internet;
  • Property insurance;
  • Utilities (Electricity, Water, Hydro); and
  • Cleaning.
Vehicle

VehicleIf 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:

  • Gas;
  • Maintenance;
  • Insurance;
  • Lease payments;
  • Parking; and
  • Car washes.
While deductions and write-offs lower your taxable income (and ultimately reduce how much you owe in taxes), it’s important for influencers and content creators to consult with financial professionals to ensure your business income streams are optimally structured.

This article has been prepared for the general information of our clients. Please note that this publication should not be considered a substitute for personalized advice related to your situation.

How can we help?

Whether you’re talent looking for financial advice or an agency interested in business management services for your clients, we are here to help.
Your Platform(s) *
* Required Field

Contact Us

Supporting clients from competitive, diverse and constantly evolving industries is part of our DNA - just ask any of the professional athletes, artists, performers and producers who fill our roster. Whether you are launching a new career or are already a seasoned veteran, our team of professionals can help you establish solutions for today's issues and take advantage of tomorrow's opportunities.
Alana Engelberg Crowe Soberman Toronto
Alana Engelberg
Manager, Business Management Services