photography as a business

JohnRJohnR Registered Users Posts: 732 Major grins
edited February 25, 2005 in Mind Your Own Business
I was talking to my neighbor today and discussing my recent indecision on getting a new camera and what model, etc. He told me that he thinks it would be best for me to start my own business and then I could deduct the cost of the camera and equipment off on taxes. He even said that I could claim I have a business now if I sold some prints off of my smugmug site!

Now...not knowing anything about this, I assumed he was right.

Questions I have are:
1. Would it be wise to set up a business and write the cameras off on taxes..provided I have some work from it? (Which I would...I have a job in June on a wedding)

2. Is it easy? And how would I go about doing this?

3. What do you all think?

Thanks for your input.

Comments

  • John MuellerJohn Mueller Registered Users Posts: 2,555 Major grins
    edited February 25, 2005
    I been invited to join PPSO and their prerequisite is to have a vendors license.Showing that I'm in business.I don't know if I want to deal with tax stuff just yetne_nau.gif
    My Smuggy

    Cincinnati Smug Leader
  • blackwaterstudioblackwaterstudio Registered Users Posts: 779 Major grins
    edited February 25, 2005
    I'm in the process of setting up a business, getting the lic, filing the papwerwork to have a LLC, state tax forms, etc.
  • amcamc Registered Users Posts: 84 Big grins
    edited February 25, 2005
    Hi John...

    Not long ago, I posted what one would have to do in my particular state to officially get into business. Also, I think you have a period of time (years) before you are expected to either make a profit or show some income, during which time you are still considered a business and may deduct your expenses. Obviously you need to check this out from official sources.

    Here's the link to my original post....
    http://dgrin.com/showthread.php?p=56439#post56439

    Regards...
    amc
    amc.smugmug.com
  • GerryDavidGerryDavid Registered Users Posts: 439 Major grins
    edited February 25, 2005
    I think how much of your gear expenses you can write off reflects how much work you do. If your not making money money, then they figure its being used for personal use so you cant write it all off.

    If your signed up for tax, you should be able to get the tax back or not even pay the tax. But this isnt worth much since the gear was probably bought online so no tax paid anywase.

    Also you could write off part of your house bills for the job. A room if you devote it to the business, like a comp room, part of the water, electricity, etc. But if you have customers come to the house, you need additional insurrance. If they slip on the front step, your house insurrance wont cover it since it was business. Or at least this is what ive read online and heard about Ontario rules.

    I think the best bet would be talk to your accountant and find out whats legal for your area and your situation. You dont want the irs or anyone against you, so keep it legal.
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