An often-ignored aspect of producing content for OnlyFans is the taxation involved in the process. OnlyFans creators must keep track of all their expenditures to seize advantage of as many tax write-offs and deductions as possible.
In this article, you will discover the tax write-offs and deductions available for OnlyFans creators.
OnlyFans Tax Write-Offs and Deductions – In Detail
When filing tax returns with the Internal Revenue Service (IRS), OnlyFans creators can deduct the costs of their business operations. As account owners are not “employees” of the platform, the IRS treats each content creator as a “small business” for tax purposes. Here’s a list of deductible expenses:
Platform Fees & Other Processing Fees
OnlyFans’ payment system follows a subscription-based pattern, which means fans pay directly to their favorite content creators and the platform deducts a fee from the total amount received. Fortunately, it is possible to deduct OnlyFans fees and other costs such as fees paid to payment processors (e.g., PayPal) and banks.
Equipment & Gear
It is impossible to create content for OnlyFans without cameras, lighting equipment, sound equipment, and other much-needed gear to materialize the final product for fans. As these costs are part of the taxable income, it is possible to deduct them all and save a significant amount of money.
A content creator may also need one or multiple cell phones to manage social media accounts, interact with fans on videos, and contact agents, clients, equipment suppliers, and others. Any phone costs related to the OnlyFans activity can be included in the deduction percentage.
Rent, Property Taxes & Utilities
Whether an OnlyFans creator relies mostly on external shooting or prefers to work in a studio, it is crucial to have a location defined as the main workspace. Expenses like rent and mortgage payments are partially deductible, as well as some property taxes.
No one can run a business without electricity, water, wi-fi, and other utilities. Utility expenses also qualify as part of the tax deduction. Please note that internet/wi-fi fees are tax-deductible to the extent that they are business-related.
For OnlyFans creators working from home or renting a commercial studio, it is possible to deduct expenses like HVAC costs, insurance premiums, repairs, and maintenance.
Professional Services
The assistance of professional services is fundamental to guarantee the success of an OnlyFans account, especially when it comes to advanced editing skills, programming skills, accountancy guidance, legal advice, and other expertise.
If you have hired a video editor, business consultant, agent, accountant, lawyer, or any other professional to help you throughout this endeavor, it is possible to deduct the expenses from the taxable income.
Software, Website Domain & Other Related Expenses
Online content is inherently associated with the extensive use of software and other digital resources. The costs to purchase business-related software can be deducted from annual tax returns, including Adobe Creative Suite, Photoshop, and other computer programs for OnlyFans creators.
Building a solid fan base depends a lot on solidifying the customer-brand connection, which requires an external website with a domain-independent from OnlyFans. Redirecting fans to a personal website involves hosting fees, domain costs, and web design expenses are part of the write-off list.
OnlyFans Tax Write-Offs and Deductions – Immediately Contact an Expert CPA
Waste no time with uncertainty. Contact Edward D. Quilca, CPA today by calling (786) 310-5582 or emailing [email protected] to find the best tax-saving strategy for your case.
