I just watched a clip from a streamer (link below) where they said that anything they buy on stream counts as a write-off. How far does this actually go? For example, if I started an IRL stream, could I buy a new car for ‘entertainment purposes’ and write it off as a business expense for streaming?
Technically, you can try to write it off, but then the IRS might audit you, and you’ll need a solid explanation. If you can’t justify the expense (and you probably can’t in the car example), they won’t accept it. Be careful with this kind of stuff—it’s risky.
You can write off anything you want, but the IRS might not agree with your reasoning. If they don’t, you’ll owe taxes on it, possibly with penalties. Streamers aren’t tax experts, so don’t take their word for it.
To write something off, it has to be used 100% for your business. If it’s for personal use too, you can’t deduct the full cost (or sometimes any of it).