Rick from NY Loc: Sarasota FL

There is so much incorrect information here that the best advice I can give you to see an accountant. Actually that suggestion made by others above is probably one of the only absolutely correct statements made.

"Equipment is.......never Expensed in one year." Completely wrong.

"If you are incorporated you get into Schedule K and for THAT you better get an accountant!" First part totally wrong; second part totally true.

"First, you must actually be running a photography business and able to prove it." Wrong if you show a profit.

"Depreciation on a camera isn't going to save you much in taxes. That would be better for something like a car." Ridiculous! It can save you a ton.

"179 take it all in year 1 but be prepare for an audit 2 to 3 years later!" You have the 179 part right, but the second comment about an audit in 2 years is ridiculous.

"When that gets sorted out, then we can get into why a photo forum is not the best place to get advice on filing a tax return" The absolute best answer of all given above. This is 100% accurate.

And finally - the answer to the original question is Form 4562.

jerryc41 Loc: Catskill Mts of NY

Imagine the poor guy who's in business for three years and still isn't generating any income. Now it's just a hobby. :cry:

John_F Loc: Minneapolis, MN

Is the camera equipment reserved for business use only and provable?

sb Loc: Florida's East Coast

From TurboTax: "If you are an owner of a partnership, LLC, S-corp, or other entity that passes through taxes to its owners, in most cases you will receive a K-1 form each year."

My understanding is that most LLC's and PC's and PA's (Professional Corporations and Professional Associations) choose an S-corp designation for many beneficial reasons, and that was always what I used as a Professional Corporation, and I always filed a Schedule K with the help of my accountant.

Other years when I have done part-time consulting I have filed a Schedule C, and it is not really rocket science. The 4562 form (expensing and depreciation) is a little hard to figure out at times. The tax software packages make it pretty easy. My simple rules: do your best to figure it out, be honest, and keep records. If you do that it doesn't really matter if you are audited. I was audited one time - they found that I had accidentally listed an expense in two different places. It was a $36 expense, so after all of their hard work I was billed something like $85 which included interest and penalties. Contrary to popular belief, they really are not out to get the little guy who is HONEST.

Also - do not forget that if you file self-employed income, you have to fill out the self-employed tax form, which includes not just the income tax but the FULL Social Security and Medicare taxes, half of which is normally paid for by your employer!

LoneRangeFinder Loc: Left field

Look for form 4562. And, I generally agree with the comment about not soliciting tax advice from any source other than a tax professional…

Sorry, just saw sb's post….

JimBart Loc: Western Michigan

As a former tax auditor and not making recommendations either way, I would say unless you are a professional photographer with regular sales activity then file as a business If you are a hobbyist photographer with an occasional sale then forget it Why? The time and costs spent in record keeping, business applications, tax filings by a professional etc is not worth the overall effort In addition if you are ever audited all information is open to scrutiny not only by the IRS but also state and local government
In the end, it's your decision but don't claim more than you are entitled to
If Beach lady is in the marketing business she should be registered. I believe Sched 4562 is your property schedule and depreciation and asset listing should be entered and claimed there On sched C the support documentation is usually supplied and entered as depreciation
I would ask though..... If you are in marketing ... Of what use is the photography equipment used for, do you use it personally, what about all the peripheral equipment including computers..... How is it used
All food for thought

forjava Loc: Half Moon Bay, CA

No matter what all the other issues may be, as of last year, there is no longer depreciation in personal returns.

Rick from NY Loc: Sarasota FL

What are you talking about? That is 100% incorrect.

CaptainC Loc: Colorado, south of Denver

I do run a business. I make a decent profit every year since year 2. There is no WAY I would do my own taxes! I keep great records and hand them over to my CPA every tax season. Just from some of the stuff he has told me, most of the information on this thread is suspect. Some sounds "maybe" OK.

Just hire a competent CPA/tax preparer. My CPA does not do photography and I do not do taxes!

DirtFarmer Loc: Escaped from the NYC area, back to MA

+1
:thumbup:

Indi Loc: L. I., NY, Palm Beach Cty when it's cold.

As CaptainC says, "Hire a CPA." You may think it costs a lot of money but what a good accountant can get back for you is usually way more than you paid them.

I just got my taxes done on Thursday. Depreciation, for my taxes, is on Depreciation and Amortization Report, Schedule A Depreciation.

If you derive income from photography, there's no reason why you can't claim your equipment and Depreciate/Amortize it.

forjava Loc: Half Moon Bay, CA

Rick. Check it out. Oh, you CAN. But this is now discouraged, with prejudice.

Rick from NY Loc: Sarasota FL

Check it out? I check it out every day. I am a practicing CPA and depreciation on a personal return is as common and accepted as white on rice.

RSPB Loc: New York

Rick, you did a great job here responding to all the misconceptions posted by others, and answering the OPs question (what form to use). My annoyance at these many incorrect responses was what prompted me to post my first comment here, but you went the extra mile and really nailed it.

JimBart Loc: Western Michigan

Thanks Rick Excellent response to a complex topic