write off my equipment for taxes?
Apr 11, 2012 19:00:20 #
I figure I have to feed, clothe, and house them.....just like kids.....ought to be able to save something :-)
Apr 12, 2012 00:45:23 #
Apr 12, 2012 02:14:37 #
Michael O'
Loc: Midwest right now
cosmo54 wrote:
I figure I have to feed, clothe, and house them.....just like kids.....ought to be able to save something :-)
Can't give legal or fiscal advice, but basically you can write off equipment and supplies (over different and specific periods of time -- look it up)if, and only if, you actually are in the business of selling your photo work. If so, check with your accountant and start keeping expense records, including travel done specifically for photo work you sell or actively attempt to sell. Advertizing costs would also be legitimate. If you're serious, get with your tax accountant, and get busy. Legit write-offs are
an additional way to help accumulate equipment -- particularly the lens you need.
Michael O'
Apr 12, 2012 02:29:37 #
There is something called Hobby Loss, but I'd recomment you speak with a tax expert to see if you qualify and it's worth doing.
Apr 12, 2012 07:47:17 #
Sorry guys if it wasn't clear that I was joking. :-{
Apr 12, 2012 08:16:52 #
The IRS has a publication on deducting hobby expenses. You might want to check it out. In general, you can't. But there are (at least) two wrinkles. First, if you make a profit 3 years out of 5, then the IRS considers you to be running a business; it's no longer a hobby. (But don't take my word for that; check out the relevant publications or consult a tax expert.) Second, if you happen to make some money through your hobby, then you can deduct your expenses on Schedule B (I think it is). I did this a few years ago. Won a photo contest and then deducted my photo equipment expenses for that year. These would be itemmized deductions, not like business expenditures one would deduct from gross income to identify your net income. Still, the Part B deduction shaves off an amount equivalent to your total expenses times your marginal tax rate. Or something like that. Had it all in my head once upon a time. But that's close.
Apr 13, 2012 21:18:59 #
cosmo54 wrote:
Sorry guys if it wasn't clear that I was joking. :-{
Who is joking? The government dreams up way to take our money from us, it's only fair that we get to think up ways to keep it.
Apr 14, 2012 03:19:56 #
francesca3
Loc: Sausalito, CA
Glenn K wrote:
The IRS has a publication on deducting hobby expen... (show quote)
Question: Did you win money in the contest? My guess is that if you claim photog. to be a hobby, then it is, contests or no...?
Apr 14, 2012 07:34:34 #
francesca3 wrote:
quote=Glenn K The IRS has a publication on deduct... (show quote)
No, I won a trip -- any trip that the company offerred, up to a value of $10,000. The trip we selected cost a bit more, maybe $12K for the two of us. So, our out-of-pocket cost was $2K.
As I recall, the IRS considers you to be running a business if you make a profit 3 years out of 5 -- even if you call what you're doing a "hobby" and contest winnings are earned income as far as the IRS is concerned.
BTW, I may have mispoke in my prior post about how the expenses are deducted. As I recall now (and none of you should trust my memory -- I don't), hobby expenses are deducted from hobby earnings to determine whether you have reportable earnings in a particular year. The IRS publication is your best source of reliable information on this issue.
Apr 14, 2012 08:16:07 #
francesca3
Loc: Sausalito, CA
Glenn K wrote:
quote=francesca3 quote=Glenn K The IRS has a pub... (show quote)
Wow, what a nice prize to win! I imagine your photo must have been super. (hint hint)
)))
Apr 15, 2012 20:03:17 #
Youn can also write them off if you are a private investigator.
Michael O' wrote:
quote=cosmo54 I figure I have to feed, clothe, an... (show quote)
Apr 19, 2012 22:56:37 #
leonardb
Loc: Montgomery,AL
I had a friend once won a car in a raffle! guess what? Our friend the IRS wanted either the car or the taxes. so
I'm supprise you did not have to pay taxes on the ten thousand
I'm supprise you did not have to pay taxes on the ten thousand
Apr 19, 2012 23:49:49 #
Michael O'
Loc: Midwest right now
leonardb wrote:
I had a friend once won a car in a raffle! guess what? Our friend the IRS wanted either the car or the taxes. so
I'm supprise you did not have to pay taxes on the ten thousand
I'm supprise you did not have to pay taxes on the ten thousand
Contest holders now recognize this IRS problem that holds down participation. I've seen a couple of contests just lately, one for a super house and one for a pair of Shelby GT500s (one a '67 and one a "2012) and both included $50,000 or more to pay the taxes for the winner.
Michael O'
Apr 20, 2012 07:11:03 #
leonardb wrote:
I had a friend once won a car in a raffle! guess what? Our friend the IRS wanted either the car or the taxes. so
I'm supprise you did not have to pay taxes on the ten thousand
I'm supprise you did not have to pay taxes on the ten thousand
I had to report the value of the trip ($10,000) as income. But I could deduct my photo hobby expenses in that year because the prize was from a photo contest. The IRS publication on hobby earning and expenses reveals all.
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