Business Finance Question about Cameras

alixmiles

Ok guys here goes.

Been at it for over a year now hard and heavy. I have almost 70,000 pics on my website and dont see it slowing down.

Talking with my accountant...we are depreciating my equipment over a 5 year period.

My question is this.

Do you guys use your equipment till it is completely depreciated..or do you get new each year and consider the amount depreciated as a business expense?

I want to purchase both the 1d Mark IIN and the 1DS Mark II cameras and maybe trade them out each year.
I will probably keep either the 5d or upgrade the 20d to a 30 d for a backup.

Here is an example my accountant gave me.

If I buy a camera for 3500....depreciate over 5 years = 700 per year deduction.
If I sell it after 1 year for 2700...I break even...which is good. Then I buy another and do the same next year.

I plan on shooting as much if not more over the next few years. Business plan not finished yet...but I sure am having fun doing it.

I cant go full time yet.....No way starting out I can replace my daytime income. It will have to be after the business is making money.

Just curious what you guys do for your equipment. I can easily see spending at least 10 grand every year for new equipment.

Thanks,
Barry

Shay Stephens

If the business can support the cost of buying and swapping out that equipment on a yearly basis, then I suppose there is no harm done.

Scott_Quier

This is not legal/accouting advice, just my non-professional opinion and I'm not yet in a position where my camera is even paying for itself so take that into account as you read this.

Like Shay says, if you have the income to cover the swap, there may be no harm done. However, think on these points:

• How close are you to the max rated actuations on the camera body?
• Has the body been performing as you need it to?
• Are there features in the new body that you need or that will make life easier?
• Like a new car, when you buy something new, you really don't know what problems you are buying.

I tend to live by the motto, "If it ain't broke, don't fix it."