YouTube channel guidelines

[rwm221]

I have a client that has a travel YouTube Channel. He has $2,500 in royalties and about $30,000 in expenses including his trip to Disneyland. Does the IRS have any guidelines for this. He says all of his deductions were for his channel content

Thank You

[Lion]

Why didn't he travel to tourist areas in his own state? Or camp in national parks? How did he live earning only $2,500? How did he pay for $30,000 in expenses? Is it usual and necessary to spend $30,000 to earn $2,500? Did you look at his P&L Detail? Isn't Disneyland a bit over-reported; what could he offer? In fact, what does a man have to offer to families considering a Disneyland vacation when those vacations are usually booked from the mother's knowledge of her kids? Why not visit local amusement parks or seasonal activities or sporting venues? How long has he been your client? Did he get his tax/bookkeeping information from YouTube instead of from you?

[Snaggletooth]

Lion, I perceive you may be a bit suspicious....

FWIW I would be too...

[New York Enrolled Agent]

I . Does the IRS have any guidelines for this.

Absolutely

IRC 162 Trade or Business Expenses
IRC 262 Personal, Living and Family Expenses
IRC 274 Disallowance of Certain Entertainment….

[Lion]

Sorry! My tax software updated and then didn't recognize my password. So I was cranky! Luckily, the hold time for tech support was surprisingly short for a Monday. The tech had a heavy accent, but he did solve my issue in less time than I'd feared. I think I'm back to my normal level of suspicion, which is still a high level for influencers clients.

[FEDUKE404]

Run Forrest. . .run!!
At best, this might be hobby income where "expenses" can reduce taxable income to zero but not generate a tax loss.