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Question
Hi. My wife started becoming a social media influencer through her Instagram account. Can I start to deduct her business-related expenses from my other active income (W-2 and K-1 that is not passive)? My wife and I file a joint return. Thank you.
- Anonymous
Answer
Great question! Business related expenses can be deducted if your wife's social media influencer activity is a business. The IRS generally defines a business as having a profit motive. There are other factors to consider like how much time is spent on the activity and if she relies on the income she receives for her livelihood. If it meets the IRS definition of a business, then business related expenses can be deducted against any income she receives. As long as your wife was considered active in her social media influencer business, generally losses can be offset against other sources of income.

Melissa Pedigo

Melissa Pedigo has been a CPA for over 20 years and she is one of the only CPA copywriters in the world. With a vast knowledge of U.S. tax and accounting, she’s able to write about tax and finance topics from a unique perspective...as an industry expert. When she’s not writing or being an accounting nerd, you’ll find her watching and playing tennis, reading, tending to her half-grown garden, and studying foreign languages

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