Content creators can deduct equipment purchases using three methods: Section 179, bonus depreciation, or MACRS standard depreciation. Most creators should use Section 179 for simplicity.
Section 179 (recommended for most creators):
- Deduct the full purchase price in the year you buy it
- 2026 limit: $2,560,000, reduced once total section 179 purchases exceed $4,090,000 (IRS Rev. Proc. 2025-32 §4.24) — effectively unlimited for solo creators
- Requires more than 50% business use
- Cannot create a Schedule C loss (excess carries forward)
- Example: $3,500 camera at 90% business use = $3,150 deduction this year
Bonus depreciation (100%, and now permanent):
- The One Big Beautiful Bill Act (P.L. 119-21, enacted July 2025) reinstated the full 100% allowance for qualifying property both acquired and placed in service after 19 January 2025, and made it permanent — the old TCJA phase-down toward 40% no longer applies to equipment bought now (IRS Notice 2026-11; Publication 946)
- The acquisition date governs, not just the tax year: property acquired before 20 January 2025 stays on the old TCJA phase-down, whose rate follows the year it is placed in service — 40% for 2025, 20% for 2026, nothing from 2027. A written binding contract signed before 20 January 2025 counts as acquiring it then
- You may elect 40% instead of 100% for the first tax year ending after 19 January 2025
- Useful when Section 179 has complications (vehicle use limits, or a Section 179 deduction capped by net income)
MACRS standard depreciation:
- 5-year class: cameras, computers, audio equipment, phones
- 7-year class: office furniture, shelving, acoustic panels (a permanent studio build-out is a real-property improvement and is depreciated over a longer life)
- Best when income is low this year and expected to grow (save deductions for higher-bracket years)
Mixed-use rule: Deduct the business-use percentage only. Camera used 80% for content = deduct 80% of cost. Document the percentage at purchase time. Section 179 requires >50% business use.
Records needed for Form 4562: date purchased, item description, cost, business-use percentage. Your accountant handles the form.
These figures are current for tax years beginning in 2026 and are educational estimates — confirm with your tax professional before relying on them. The right method depends on your income, your business-use percentage, and your purchase and placed-in-service dates.