I have no idea how this stuff works because I'm not a scammer and online degenerate, but it doesn't make sense that he gets to play with toys and go to theme parks as a "business expense". For example, he claims that the $700 packs of cards he gets to open on stream and make videos with are "tax write-offs". I don't really understand how you can justify something so overly expensive and used as a luxury and toy as a "business expense" because you made $50 in Twitch donations using them. They are toys you play with, they are obviously not for any "business", they are for your pleasure. If something is a business expense, shouldn't it be limited to business and not personal use? Writing off thousands of dollars of toys and video games as "business expenses" because they appeared briefly online so that you can play with them forever doesn't seem like it's something you are able to do.
So what Boogie is doing is abusing a legal grey area where small business owners, which is in itself a grey area whether or not Boogie is a small business owner, can write off expenses that is used to leverage against their revenue.
For Example, lets say I needed to buy fuel for $5,000 to haul wood for my business in a given year and the wood I hauled in for that year only made me $4,000. Lets assume a 25% flat business tax as to not overcomplicate this even further. Assuming i had no business related expenses, I would be charged $1,000 in taxes on the $4,000 profit. HOWEVER, I needed to buy $5,000 in fuel that year to do my job meaning I made no actual profit that year and had $1,000 loss. Since business taxes only apply to profits, I therefore didn't have to pay any business taxes to the government.
The above example is an ideal scenario because how is the government supposed to know I spent all $5,000 of that fuel on business uses? Lets say I only used half of that fuel for business and the other half for driving for personal errands in that year, then I make 4,000-2,500 = 1,500 in profit, which would mean I would owe $375 (25%) in business taxes. Why would I ever report this when I could just say I used it all on business and keep the $375?
Boogie is claiming that a lot of the overpriced nerdy bullshit, travel, probably whores, etc. he pays out the ass for is a business expense for his "content creation" business so he can leverage it as an expense against his revenue to pay minimal taxes (if any at all).
This is where auditing comes into play. The IRS is not that stupid and will come for blood if they can prove that something fishy is going on. This is when they would come to audit their business to investigate and find evidence of tax fraud.
The difference with the above example I gave and what Boogie is doing is that it would be legitimately difficult to prove in an audit that the fuel was being used for personal use. If Boogie was audited it would be hilariously easy to determine if most of the expenses he is claiming for his business are personal use.
However, Boogie and many other content creators have been able to get away with defrauding their taxes with this method for a long time because while the IRS is not stupid it is very behind the times and didn't really understand content creators and what they did for work. Going back to my example, its like if the IRS had someone who had never seen, heard or learned about a wood hauling business look into my example case. If they don't know how my business works and what expenses I incur, then they really wouldn't know if I was doing anything suspicious and probably default let me pass without issue.
That has inevitably changed though as content creators have become more prominent and there are signs that a lot of governments around the world are cracking down harder on these fraudulent tax write offs and performing more thorough audits.
