Profit Tax Reporting

nickphoto123

Hello Andy,

I tried a search with no answer.

I would like to obtain my accumulated profit and report it as 2007 income.
My accumulated profit is from 2006 & 2007 sales.

Are profits reportable based on sale date ( 2006 ), or by Payment (to me) date ( 2007 )?

Thank you,

Nicholas

dogwood

nickphoto123 wrote:

Hello Andy,

I tried a search with no answer.

I would like to obtain my accumulated profit and report it as 2007 income.
My accumulated profit is from 2006 & 2007 sales.

Are profits reportable based on sale date ( 2006 ), or by Payment (to me) date ( 2007 )?

Thank you,

Nicholas

This is a wild guess but, did SM send you the IRS profit statement for 2006?

Generally, the profit you report to the IRS is based on the year it was paid to you. If you didn't get a statement from SM about your earnings, it wasn't reported to the IRS as income in 2006 so you can wait until the end of 2007 (assuming you request payment this year) to report it as income.

But again... that's just a wild guess. I'm definitely not a tax expert!

Andy

nickphoto123 wrote:

Hello Andy,

I tried a search with no answer.

I would like to obtain my accumulated profit and report it as 2007 income.
My accumulated profit is from 2006 & 2007 sales.

Are profits reportable based on sale date ( 2006 ), or by Payment (to me) date ( 2007 )?



Thank you,

Nicholas

Hello Nicholas,

You can easily tally up your profit, it's in your prosales page, control panel. You can also download that info in a .csv spreadsheet format. The dates are there, too.

As to how you'll declare it, that's a question for you to ask your accountant.

Does this help?

nickphoto123

Andy wrote:

Hello Nicholas,

You can easily tally up your profit, it's in your prosales page, control panel. You can also download that info in a .csv spreadsheet format. The dates are there, too.

As to how you'll declare it, that's a question for you to ask your accountant.

Does this help?

Hi Andy,
If I may ask the question this way:

When you disburse profits to a Pro member, what year do you report to the IRS in the 1099, if some profits are from current year sales and some profits are from previous year sales ( e.g. Total disbursement of $50 made in Feb. 2007 for $20 profit from Dec. 2006 and $30 profit from Jan 2007 )
Do you just report it all in the current year ( 2007 in this example) you pay the Pro member?

Thank you,

Nicholas

Andy

nickphoto123 wrote:

Hi Andy,
If I may ask the question this way:

When you disburse profits to a Pro member, what year do you report to the IRS in the 1099, if some profits are from current year sales and some profits are from previous year sales ( e.g. Total disbursement of $50 made in Feb. 2007 for $20 profit from Dec. 2006 and $30 profit from Jan 2007 )
Do you just report it all in the current year ( 2007 in this exaple) you pay the Pro member?

Thank you,

Nicholas

We didn't send a 1099 to you, the amount was not enough to warrant a 1099. Had we sent you one, we'd have reported payments made to you in 2006 only.

nickphoto123

Andy wrote:

We didn't send a 1099 to you, the amount was not enough to warrant a 1099. Had we sent you one, we'd have reported payments made to you in 2006 only.

We are getting closer.

Smugmug Help indicates: "Note: We are required by the government to report the amount we've paid a pro photographer for tax purposes if that amount exceeds $600 in the calendar year. If you've made at least $600 in the previous calendar year, we will send out a 1099 tax form to the address we have on file for you in January of the following year."

Question: for example: If I have currently have $700 profit ( $500 from 2006 and $200 from 2007), and ask for payment. When you send me the $700 and send the IRS the required 1099 in January 2008, will you indicate the payment year as 2007 for the entire $700?

Thank you,

Nicholas

Andy

nickphoto123 wrote:

We are getting closer.

Smugmug Help indicates: "Note: We are required by the government to report the amount we've paid a pro photographer for tax purposes if that amount exceeds $600 in the calendar year. If you've made at least $600 in the previous calendar year, we will send out a 1099 tax form to the address we have on file for you in January of the following year."

Question: for example: If I have currently have $700 profit ( $500 from 2006 and $200 from 2007), and ask for payment. When you send me the $700 and send the IRS the required 1099 in January 2008, will you indicate the payment year as 2007 for the entire $700?

Thank you,

Nicholas

it will be on your 2007 1099

nickphoto123

Andy wrote:

it will be on your 2007 1099

Thank you Andy, ( and Dogwood for a good guess ).

I was hoping it would work that way. I needed to know with the 2006 Tax deadline aproaching.

I would rather call it all 2007's earnings.

Again,
Thanks for the Best Possible Service a photographer can obtain,
Smugmug.

Nicholas