MicrostockGroup

Hi Stock Folks,

I've been told to be real careful on the business side as to not consider my hobby as a business since the IRS will come down on me like bees on honey plus the State Tax Auditors. Told me me selling a pic here and there is not a business thus wait until you have high revenues and even then don't call it a business.  Some folks have told me that writing off your vacations in Hawaii or a room in your house will get you a very fast visit to your local IRS office- any thoughts on this?


Thanks.


Tom

I ran a design business out of my house for 10 years. I never deducted it because it is a big pain in the butt when you go to sell your house and such. I kept my deductions reasonable; things that I could document every which way so there was no question. If its a business, treat it as such and set it up as such. I have rolled my photography into my design business that I have set up as a DBA and let my accountant sort out the deductions

I have never been audited and don't want to be, but I work out of my home and have expenses associated with that.  I don't see why not take legitimate deductions. 

If you genuinely use a room in your office, it shouldn't be a problem to claim it.  If you take a trip to Hawaii for the purpose of taking stock photos, then it seems like it should be deductible.  If you take a trip to Hawaii for your anniversary and take a few snaps along the way, maybe not a good idea to deduct it.