I’ve seen this question pop up in forums like Reddit and Quora—can you claim (depreciate) the cost of buying a YouTube channel on your taxes? If you’re purchasing an existing channel with followers, monetization rights, and maybe even brand deals, in Canada, the CRA might consider that a capital asset.
The short answer is: yes, buying a YouTube channel can be treated as a Class 14.1 depreciable asset.
The CRA classifies certain intangible assets under Class 14.1, which includes things like:
If you buy a YouTube channel with the intention of earning income (ad revenue, sponsorships, affiliate sales, etc.), and you can back that up with a purchase agreement and business rationale, the CRA lets you depreciate the cost over time.
Under Class 14.1, the depreciation rate is 5% per year using the declining balance method. First-year purchases also qualify for the Accelerated Investment Incentive, which boosts the first-year claim.
CRA’s full list of CCA classes is here:
CRA – Claiming Capital Cost Allowance (CCA)
For the CRA to accept it:
Buying someone’s old personal vlog channel with no monetization? Probably not deductible. Buying a monetized channel with a niche audience and ad revenue history? That’s more likely to be accepted.
You don’t expense the full cost up front. Instead, you add it to your Class 14.1 asset pool and claim Capital Cost Allowance (CCA) each year.
If you’re incorporated, your corporation claims it. If you’re a sole proprietor, it’s reported on your T2125.
You can’t use it to create or increase a loss—you can only deduct CCA up to the level of income earned from the business.
Yes, a YouTube channel purchase can be a depreciable asset if it’s part of your business. But like everything tax-related, it comes down to facts and documentation.
If you’re thinking of buying one, make sure you structure the deal properly—and talk to someone who understands CRA’s rules around intangible assets.
Don’t assume you can write it off just because you found the deal on Reddit.
References and Resources:
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This is not legally binding tax advice. This is educational analysis. Say hello if you need help.
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