In my other post, I mentioned about the tax on Adsense income.
Many times, bloggers or YouTubers incur certain expenses such as buying a camera or other equipment, paying for marketing and subscription, and opting for a paid version of software and tools etc.
In respect of marketing expense or opting paid version of the software, you can deduct these expenses from the Adsense income while calculating the profit from Blogging or YouTube. You have to pay the tax only on the profit amount (Income - Expenses).
If you have bought any camera or other equipment such as laptop or desktop, this is your asset now. You can calculate the depreciation on these assets and then deduct it from the Adsense income.
Some tips to take care of -
1. The invoice must be in your name (if you have a brand or company, then in the name of such brand or company)
2. Preserve the invoices and renewal receipts for future reference.
3. If an equipment is used partially for home n business, apportion the percentage of personal and business purpose.
4. Depreciation in accounting is different from depreciation in income tax. Don't forget to see the depreciation rates as per Income Tax Act.Follow me to get timely updates. I can help you save hard-earned money.