Home Studio Deduction: How Much Can I Write Off?

If you’re a YouTuber, TikToker, Shopify store owner, podcaster, or filmmaker working from home, chances are you’ve created a home studio. The good news? Much of that setup could qualify for tax deductions—lowering your taxable income and saving you real money.

Many professionals outside the creator space also benefit, including doctors running telehealth consults, dentists with home offices, tradespeople managing jobs from home, and other small business owners.

Let’s break down how the home studio deduction works and how much you can write off.

Home Office Deduction Basics

The IRS allows you to deduct expenses for the part of your home used regularly and exclusively for business. If your studio is used both for work and personal hobbies, only the business use portion qualifies.

Two methods exist:

1) Simplified Method: $5 per square foot of studio space, up to 300 sq. ft. (max deduction $1,500).

2) Actual Expense Method: Deducts a percentage of your actual home costs (mortgage interest, rent, utilities, insurance, property taxes, repairs, and depreciation) based on the studio’s square footage ratio to your home.

Example: If your studio takes up 10% of your home, you can deduct 10% of qualifying home expenses.

Equipment & Furniture

Beyond the space itself, you can also deduct costs of equipment and furnishings used for your business:

• Cameras, lighting, microphones, tripods
• Computers, editing software, storage drives
• Desks, chairs, soundproofing, green screens

These may qualify for Section 179 immediate expensing or depreciation over several years.

Example: A $2,000 camera used 100% for business can be fully deducted in the year of purchase under Section 179.

Internet & Utilities

If you use the internet and phone for your business, a portion of the monthly bill can be deducted. Same goes for electricity, especially if your studio uses high-energy lighting or computer rigs.

Example: If 40% of your internet usage is for uploading videos, editing, and livestreaming, you can deduct 40% of the bill.

Soundproofing & Renovations

Special improvements that directly benefit your home studio—like soundproof walls, acoustic panels, or dedicated wiring—can also be written off. Depending on the cost, these may be expensed immediately or depreciated.

Example: Spending $5,000 to soundproof a garage studio could qualify as a business expense, written off over multiple years.

Travel & Collaboration Expenses

If your studio work requires inviting clients, collaborators, or production teams, expenses tied directly to studio use may also qualify—though recordkeeping is essential.

Key Limits to Remember

• Space must be used exclusively for business (not part-time bedroom, part-time studio).
• Detailed records are critical—keep receipts, floor plans, and usage notes.
• Different rules apply if you’re a homeowner vs. renter.

Why It Matters

For many creators and professionals, the home studio deduction can mean thousands of dollars in savings each year. But claiming it incorrectly could lead to IRS issues. A qualified CPA for YouTubers, Shopify store owners, TikTokers, and other businesses can help you maximize deductions while staying compliant.

Work With Experts Who Understand Creators & Professionals

At Velin & Associates, Inc., we specialize in helping:

• Creators & Influencers (YouTubers, TikTokers, podcasters, filmmakers)
• E-commerce Entrepreneurs (Shopify and Amazon sellers)
• Medical Professionals (Doctors, Dentists, Dental Practices)
• Local Businesses & High-Net-Worth Individuals

We’ll help you set up your home studio expenses properly, maximize your deductions, and minimize your tax bill.

Velin & Associates, Inc
8159 Santa Monica Blvd STE 198/200
West Hollywood, CA 90046

📞 323-902-1000
📧 dmitriy@losangelescpa.org