Guide
Equipment DeductionSection 179DepreciationContent CreatorUSAHow to Deduct Equipment as a Content Creator (Section 179 + Bonus Depreciation)
That $3,000 camera, $2,500 computer, and $800 in lighting equipment are all tax deductible — and in most cases, you can deduct the full cost in the year you buy them rather than spreading it over multiple years. Section 179 and bonus depreciation are powerful tools that most content creators underuse. Here is how to maximize your equipment deductions legally.
Last updated: February 26, 2026
Step-by-Step Guide
Inventory all business equipment
List every piece of equipment used for content creation with purchase date, cost, and estimated business-use percentage.
Determine business-use percentages
For each item used both personally and for business, estimate and document the business-use percentage. Be honest — inflated percentages are audit triggers.
Choose your deduction method
For most creators, Section 179 is the best choice because it deducts the full cost immediately. Only choose MACRS depreciation if you have a net loss or expect a higher tax bracket next year.
Complete Form 4562
Report Section 179 deductions on Part I of Form 4562 (Depreciation and Amortization). The total flows to your Schedule C.
Save all purchase documentation
Keep receipts, credit card statements, and invoices for all equipment purchases. Note the business purpose on each receipt. Retain for at least 7 years.
Three ways to deduct equipment
Method 1: Section 179 Expensing (most common for creators)
Deduct the full purchase price of qualifying equipment in the year you buy and start using it. The 2026 limit is approximately $1,220,000 — far more than any individual creator will spend.
Qualifying equipment: cameras, lenses, computers, monitors, microphones, lighting, drones, studio furniture, vehicles (with limitations).
Key rule: You must use the equipment MORE than 50% for business. If business use is 70%, you deduct 70% of the cost.
Method 2: Bonus Depreciation
Similar to Section 179 but with different rules. In 2026, bonus depreciation is being phased down — check current rates (it was 100% through 2022, then decreased by 20% per year). Bonus depreciation applies to new and used equipment.
Method 3: Standard Depreciation (MACRS)
Spread the cost over the asset's useful life (5 years for most electronics, 7 years for furniture). This is the default if you do not elect Section 179 or bonus depreciation.
Most content creators should use Section 179 because it provides the full deduction immediately, which is most valuable when your tax rate is highest.
Equipment deduction rules and limits
Business use percentage:
If you use equipment for both business and personal purposes, only the business percentage is deductible.
- Camera used 90% for content creation: Deduct 90% of cost
- Computer used 60% for editing, 40% personal: Deduct 60%
- Phone used 50% business, 50% personal: Deduct 50%
How to document business use:
- Keep a log of business vs personal use (especially for vehicles)
- Note the business purpose for each purchase on your receipt
- For mixed-use items, estimate the percentage honestly and document your reasoning
Listed property rules:
Certain items (vehicles, computers, phones) are 'listed property' under IRS rules. You must document business use exceeds 50% to claim Section 179. If business use drops below 50% in any year, you must recapture (pay back) part of the deduction.
Vehicle deductions for creators:
- SUVs over 6,000 lbs GVWR: Section 179 deduction up to $28,900 (2024 limit, check for 2026 updates)
- Passenger vehicles: Limited to $12,400 first-year depreciation (including bonus depreciation)
- Or use standard mileage rate (67 cents/mile in 2024) instead of actual expenses
Equipment purchased before starting your business:
If you bought a camera before starting your channel, you can start depreciating it when you begin business use, based on fair market value at that time (not original purchase price).
Practical examples for content creators
Example 1: New YouTuber startup equipment
- Camera: $2,500
- Microphone kit: $400
- Lighting: $300
- Computer (80% business use): $2,000 × 80% = $1,600
- Editing software (annual subscription): $240
- Total Section 179 deduction: $5,040
- Tax savings at 22% bracket + 15.3% SE tax: $5,040 × 37.3% = $1,880
Example 2: Established creator upgrading setup
- New camera body: $3,500
- Lens kit: $2,000
- Studio monitors: $800
- Acoustic treatment: $500
- New desk and chair: $1,200
- Total Section 179 deduction: $8,000
- Tax savings at 24% bracket + 15.3% SE tax: $8,000 × 39.3% = $3,144
Example 3: Mixed-use laptop
- Purchase price: $3,000
- Business use: 70%
- Section 179 deduction: $3,000 × 70% = $2,100
- Keep notes documenting that 70% of usage is video editing, business email, and content management
When NOT to use Section 179:
- If your business has a net loss this year (Section 179 cannot create or increase a loss — carry the deduction forward instead)
- If you expect to be in a significantly higher tax bracket next year (the deduction is worth more at a higher rate)
Disclaimer: This is general information, not tax advice. Depreciation rules change frequently. Consult a CPA for the optimal deduction strategy for your specific equipment purchases and income level.
Pro Tips
- Buy equipment before December 31 and place it in service (start using it) before year-end to claim the deduction for the current tax year
- Section 179 applies to USED equipment too — buying a refurbished camera still qualifies for the full deduction
- If you buy equipment with a credit card, the deduction is based on the purchase date, not when you pay off the card
- Keep your equipment receipts organized by year — you may need them for an audit even 5-7 years later
- The Section 179 deduction cannot create a net business loss — if your deduction exceeds your profit, the excess carries forward to next year