Social media coach shares ‘insane’ secret about how influencers generate profits: ‘That is loopy’
Have you ever wondered how influencers can afford all this designer clothing and extravagant trips? Well, tax deductions might have something to do with it.
Recently, digital marketing trainer Mila Homes shared this overwhelming fact with her 471,000 followers on a now viral TikTok.
“I was years old today when I realized that YouTubers were transporting clothes on their channels so they could write off the clothes on their taxes,” she said in the video. “You literally get so cool [clothing and] Make a video of this so that it will be considered work and then they can copy it down. THAT IS SO COOL!”
That may sound too good to be true, but Holmes is right. According to the accountant Handy Tax Guy, all you need to do is demonstrate that your clothes are necessary to “perform your job as an online influencer” to write them off as a business deduction.
That’s not the only thing influencers can write off when they pay their taxes. Travel expenses like transportation and housing can be considered material for an influencer, making them a tax write-off. Prices used for freebies, donations, and meals consumed during the work meeting can also be written off as business expenses. For bloggers and influencers, the list of write-offs is seemingly endless.
In Holmes’ video, many influencers noted that the amount of things that can be written off during tax season is “insane”.
“And as a travel content creator, I can copy my trip,” said travel blogger @whereintheworldisnina. “And many other things!”
“There are advantages to being a small business owner,” added another person. “I’m writing off my entire mortgage because my office is in my basement.”
Other people who are not that familiar with the business of being an influencer were just shocked.
“This is crazy,” said one person.
“Brb makes a YouTube channel,” joked another.
“I’ll save so much money,” added a third.
Before setting up a YouTube channel to get “free clothes”, you should consult a tax professional to learn more about how depreciation works. Depreciation reduces your taxable income and thus your tax liability. At the end of the day you will still be paying for these trips and clothes.
The story goes on
Buy the first design in a collection that highlights black artists and brings their vision of equality to life:
If you enjoyed this story, read about this shop owner who received a giveaway request from an “influencer” with 12 followers.
More from In The Know::
How can TikTok users make money with the app? The answer is not that simple
8 Woman-Owned Brands You Can Support Today (Every Day Really)
The 15 most popular TikToks of all time
This warm and cozy teddy coat is affordable enough to buy in multiple colors
The post-social media coach shares the “crazy” trade secret about how influencers make money first in In The Know.