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I've watched a fair amount of U-tube car videos ranging from discussions on new cars, muscle cars, exotic cars. This car sucks, that car is great, etc, etc. One thing I've noticed is that these guys will own an expensive car and make videos about it. Then they'll also discuss other cars while they're driving their car or with their car in the background. Then it occurred to me. These guys are writing off these cars as business expenses aren't they? They shoot a video, put the car in the background running as they discuss why they like/dislike the new Chevy/Ford/whatever, and since it's considered a part of the video, its a business expense and therefore a tax deduction. Anyone have any insight into this?
 

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I do know some of them are writing stuff off as a business expense. However to do that, I believe they would first need to incorporate a business or sole proprietorship and then they'd have to somehow state that their business was video media via the internet (youtubing). I think the CRA (canadian tax) would raise all kinds of flags if I were trying to claim purchases as write offs for a personal youtube channel.

So I do know it's being done, but how to set it up to be legit would likely require some professional accounting insight.
 

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Why couldn't they if they are treating YouTube as a business. How many subscribers and views do they have? You can look them up on socialblade, it will breakdown the performance of a channel including estimated revenue.


Steve R
 

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Sure they can deduct it. However if the deductions generate losses for a number of years the IRS will come back and say it was a hobby, not a business and disallow the deductions, which will trigger delinquent tax bills with penalty and interest. You will wish you hadn't done it if you abuse it.
 
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I do know some of them are writing stuff off as a business expense. However to do that, I believe they would first need to incorporate a business or sole proprietorship and then they'd have to somehow state that their business was video media via the internet (youtubing). I think the CRA (canadian tax) would raise all kinds of flags if I were trying to claim purchases as write offs for a personal youtube channel.
So I do know it's being done, but how to set it up to be legit would likely require some professional accounting insight.
Not really that hard to do

CRA provides some info here
Checklist for small businesses

The only catch is if you have to fill out a HST Form each month or so,
it all depends on whether the You Tube Business Income
provides a Service that can be Billed to someone

Basically you would keep records of your Income and Expenses
and fill out a T2125 Form and file it with your Income Tax Return every year .
 
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