You'll need to sign in or create an account to connect with an expert.
First, whether an expense is deductible depends on whether it is ordinary and necessary for your trade or business. You would want to look at what is appropriate for your industry - is it typical that visual effects artists use these subscriptions for research purposes? Is this research necessary to your business?
See the following quote: "To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your trade or business. A necessary expense is one that is helpful and appropriate for your trade or business. An expense does not have to be indispensable to be considered necessary."
https://www.irs.gov/businesses/small-businesses-self-employed/deducting-business-expenses
But, these types of expenses are hard to sustain on an audit if you were ever questioned about it as there is likely to be a considerable personal aspect (non-deductible) to these expenses. So, you are going to want to be able to distinguish (and prove) between the business-related uses of Netflix compared to the personal use of it. For example, if you determine that you use these items about 50% of the time for business purposes and the other 50% for personal - only deduct 50% of the cost of the subscription or item. You may want to keep a log showing the times you are using the services for work purposes.
To enter in TurboTax -
First, whether an expense is deductible depends on whether it is ordinary and necessary for your trade or business. You would want to look at what is appropriate for your industry - is it typical that visual effects artists use these subscriptions for research purposes? Is this research necessary to your business?
See the following quote: "To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your trade or business. A necessary expense is one that is helpful and appropriate for your trade or business. An expense does not have to be indispensable to be considered necessary."
https://www.irs.gov/businesses/small-businesses-self-employed/deducting-business-expenses
But, these types of expenses are hard to sustain on an audit if you were ever questioned about it as there is likely to be a considerable personal aspect (non-deductible) to these expenses. So, you are going to want to be able to distinguish (and prove) between the business-related uses of Netflix compared to the personal use of it. For example, if you determine that you use these items about 50% of the time for business purposes and the other 50% for personal - only deduct 50% of the cost of the subscription or item. You may want to keep a log showing the times you are using the services for work purposes.
To enter in TurboTax -
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.
jzemanek
Returning Member
Mr.Kerchak
Returning Member
abutterworth
Returning Member
Edwardphaby
New Member
Anonymous
Not applicable