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Rakhi Vasavada
Rakhi Vasavada, Financial and Legal Consultant
Category: Finance
Satisfied Customers: 2574
Experience:  Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
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Question regarding taxes. I do videos online showing people

Customer Question

Question regarding taxes. I do videos online showing people how to cook different types of food and i make an income. i pay for the food with my foodstamps. If I did not have foodstamps I would pay cash for the food and I would be able to write off the expense due to me using it to make various videos (supplies). Is it possible to write off the foodstamp amount for taxes?
Submitted: 4 months ago.
Category: Finance
Expert:  emc011075 replied 4 months ago.

Hi. My name is ***** ***** I will be happy to help you.

What do you do with the food you prepare for the videos?

Customer: replied 4 months ago.
I show me making the food in the videos and that's it. Example. I buy cheese, meat, lettuce, tomatoes and do a video showing how to make tacos for example. I am just doing it so far as a hobby (i've made around $100 / year from advertising) and hopefully I plan to make more money from it in the future. I'd like to know if i use my foodstamps to make the various foods can I write it off. In the future can I write off the foodstamps that I use in my videos.
Expert:  emc011075 replied 4 months ago.

The problem I see here is not how you paid for the food but how did you disposed it. If you purchase something for your business and than you use it for your own benefit, you cannot deduct 100% of the expenses. Even 50% seems to be a little stretch if the food you prepare for your video end up on your dinner table.

Expert:  emc011075 replied 4 months ago.

Here's how the tax law works. You purchase something to use it in your business and/or create a product. If you don't need it any more you have to sell, dispose it (trash it) or convert it to personal use. When you sell your creations, you have income. When you trash it, you can deduct the entire cost. But if you convert it to personal use, you can only deduct the difference between the purchase price and the fair market value of the meal you converted to personal use.

Expert:  emc011075 replied 4 months ago.

Any questions? What you use to purchase the food is beside the point. It doesn't mater if you use your money, foods stamps or you get it in exchange for babysitting. The point here is that you cannot purchase something for your business, than use it for your own benefit and deduct the entire value of the purchase.

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