Is is chatgpt subscription tax deductible business expense a valid tax write-off?
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The cost of a ChatGPT subscription is deductible if it is ordinary and necessary for your business operations. For example, if a freelance writer uses ChatGPT to generate ideas or drafts, or a consultant uses it to enhance client interactions, the expense is deductible. However, if the subscription is used for personal entertainment or non-business-related activities, it is not deductible. The IRS requires that the expense be directly related to your trade or business and not lavish or extravagant. If the subscription is used for both personal and business purposes, only the business-use portion is deductible.