Can I Write This Off?How do I deduct can i write off chatgpt as a business expense on my taxes?
TL;DR
ChatGPT can be deductible as a business expense if it is used for business purposes.
Detailed Answer
The cost of using ChatGPT can be deducted as a business expense if it is used directly for business activities, such as generating content, conducting research, or enhancing customer service. It must be ordinary and necessary for your trade or business. Personal use of ChatGPT cannot be deducted.
Where to Put It on the Tax Form
Schedule C (Form 1040), Line 27a for 'Other Expenses'
Real World Example
A freelance writer uses ChatGPT to generate ideas and outlines for articles. The subscription cost is deducted as a business expense on their Schedule C.
Audit Risk & Documentation Tips
To minimize audit risk, keep detailed records of how ChatGPT is used for business purposes. Save invoices or receipts for the subscription and document specific instances where ChatGPT was used for business tasks.
IRS Reference
IRS Publication 535 - Business Expenses
Relevant Industries
FreelancersSmall BusinessMarketingConsultingTechnology
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Disclaimer: This is for informational purposes only and should not be construed as tax or legal advice. Always consult your tax advisor.
Page created on July 15, 2025