Deductible Expenses for Business Owners Who Podcast
Content provided by Sara Verheyen, Bookkeeper & CFO for online business owners (based in Texas, US)
Whether you are a seasoned business owner or just starting out, knowing which expenses are deductible for taxes and which aren’t is vital knowledge as you’re making business decisions. As a CPA with a decade of experience, I’m going to share with you what you need to know so you’re not leaving money on the table!*
Contrary to clickbait-y videos floating around on the internet, just because you own your own business does NOT mean your whole life is deductible. (And no, you can’t claim your dog as a dependent. Sorry.)
In general, the IRS rules for deductible business expenses are those that are ordinary and necessary. I’ll go through some common deductible and non-deductible expenses for online business owners below:
Deductible expenses
Software subscriptions
Marketing and Social Media tools
Work management platforms
Editing software or DAWs (Digital Audio Workstations)
Transcription platforms
Video/ Audio Hosting platforms
Sounder.FM, Blubrry, Website (Squarespace, Wix, Weebly, etc)
Equipment
Note: Equipment over $2,500 may need to be capitalized (which means the expense is spread out over a number of years.)
Discuss with your accountant the best option for your specific situation.
Computer or iPad
Microphone
Camera
Lights
Gadgets and dongles content
Recording studio, office, or co-working space fees
Contractor fees
Video and audio editors
Transcription professional
Podcast manager
Podcast Guest Booking Agencies
Strategy consultants
Logo and branding designers
Thank you gifts
Limited to $25 per recipient.
Paid Marketing / Ads
Traditional media
Print, billboards, radio ads
Online
Pinterest, Facebook, TikTok, LinkedIn
Education
Business books
Online courses, to learn business-related skills
Online Membership programs
Also, let’s not forget about:
Business Meals: Must have documentation including business purpose of meal, people present, etc.
Travel expenses
Professional liability insurance
Payment processing fees
Hairstyling and makeup for photoshoots
Everyday haircuts and makeup aren’t deductible
Home office*
Many exceptions and limitations apply on this one!
Studio set-up (sound damping panels or branding materials)
Affiliate commission payouts
Not Deductible:
Your daily Starbucks
Door dashing food to your house because you’re editing through lunch
Clothing for photoshoots (unless it’s considered a ‘uniform’)
Mani/pedis
Your gym membership
This list is not exhaustive, but keep the question in mind when wondering if something is deductible is “is it ordinary and necessary” to running a business?
Also remember, for all the expenses you deduct on your tax return, you should have documentation! This can be as simple as a folder in your email account labeled “Expenses for 20XX” for electronic receipts, and you can take pictures of paper receipts on your phone and upload them.
*Disclaimer: This article is for educational purposes only. There are always exceptions and limitations to the rules. Please discuss your specific situation with your tax advisor to determine the deductibility of expenses before making decisions.About Sara Verheyen
As a bookkeeper, CFO for online business owners, and Host of the Profits Affogato Podcast, Sara has a wealth of information that can help you understand how to keep your expenses under control and grow your business!
Sara has also helped our team take our business to the next level and we confirm that she makes numbers make sense to creative types, so go ahead and visit her website.