Creators & Taxes 101: Business or Hobby? Creator's Corner Newsletter #16

Hey Reader! Happy new year to you and your family. Hope it was everything you needed and then some. I personally got to see my family back home in Toronto. My nephew and niece are growing up fast - Miles and Maya are at the age where they are carefree, curious and find happiness in the little things - you can imagine the constant joy mixed with having to answer questions like "what is ___?" and "why do you do ____?" Adults have these similar questions, especially in the tax game. I have no shame in saying that they inspired me to bring it back to the basics for the first segment of 2025 below.

Are you a content creator treating your work like a side hustle? The CRA and IRS see it differently.

In Canada, if you’re making money consistently from your content creation, the CRA likely considers it a business. This means you can claim deductions for expenses directly related to your work, such as video equipment or advertising. However, if your content is more of a hobby with occasional income, you won’t have access to those deductions. Keep solid records to demonstrate you’re running a business, not just pursuing a pastime. This includes a clear income strategy, invoices, and proof of marketing efforts.

The IRS distinguishes between a business and a hobby based on intent and consistency. If you’re creating content to make a profit, you’re in business. This allows you to write off expenses like subscriptions, travel for shoots, and even part of your home office. But if your activities aren’t profitable for three out of five years, you might face challenges proving your business status. Show the IRS you’re serious by maintaining separate bank accounts and tracking every dollar.

Unsure if you’re “business legit”? Hit reply, and I’ll help you figure it out!

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As always, remember Rony's mantra - 1) Leverage the tax code to activate tax write-offs and income-generating assets. 2) Don't spend a dollar to save a quarter. Creators are always in the driver's seat of their taxes when they follow these two practices.