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: $1,250,000 (IRS Rev. Proc. 2025-18) — 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 (2026 rate: 60% per TCJA):
- Deduct 60% immediately; depreciate remaining 40% over 5 years
- Note: OBBBA 2026 may restore 100% for equipment placed in service after enactment — verify with accountant
- Useful when Section 179 has complications (vehicle use limits, etc.)
MACRS standard depreciation:
- 5-year class: cameras, computers, audio equipment, phones
- 7-year class: office furniture, studio build-out
- 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.