Nav: Home
Welcome, Guest. Please login or register.
Did you miss your activation email?
May 26, 2012, 19:32

Login with username, password and session length

MicrostockGroup

Microstockgroup Sponsors


« previous next »
Pages: [1] Print

Topic: A Business on Wheels  

(Read 718 times)
WarrenPrice

Dreamstime GaugeiStock Gauge
« on: January 25, 2011, 18:54 »

My wife had me looking at new RV trailers today.  We've often discussed going full-time.  This got me to thinking (wondering), could the RV and travel expenses be deducted or amortized over a period of years?  Is anyone else doing this?

PS:  I could travel from event to event with assignments from several publications.  That should make it business, shouldn't it?


Ignore | Logged


DepositPhotos.com
Blufish



« Reply #1 on: January 25, 2011, 18:57 »

I think the amortized would work. I had a biz for a while and deducted mileage and stuff. My suggestion is talk to a good accountant. They can direct you to everything you would need to do.


Ignore | Logged


Stu49


Dreamstime GaugeiStock Gauge
« Reply #2 on: January 26, 2011, 05:21 »

Worked away on contract in the uk and lived in a caravan.  Was allowed to charge myself a rent for use, but not the actual purchase amounts.
May be completely different over there Smiley


Ignore | Logged


WarrenPrice

Dreamstime GaugeiStock Gauge
« Reply #3 on: January 26, 2011, 11:24 »

That's another idea, Stu.  Maybe leasing an RV would make more sense?  Might have a problem deciding which assignment gets which part of the lease cost?

Maybe an accountant is the answer.   Undecided


Ignore | Logged


jbarber873


« Reply #4 on: January 26, 2011, 11:52 »

  The key to this question is two-fold. First, an accountant can tell you the rules. Secondly, the IRS wants proof. Save all your paperwork, logs mileage, etc. I can tell you that if you have a permanent residence, aside from the RV, you can probably make a good case for deducting a large part of the expenses. If you don't, you will have to separate living expenses and job expenses. The test is you can only deduct expenses that are fully a part of your job costs. That's why there is a checkbox on the IRS form asking if you deducted any part of your house for business.( AKA- the "audit me" checkbox).
  If you are not incorporated, I would look into doing that, and having the corporation own the RV. As a sole proprietor, you can quickly get into the radar, but as a corporation, you are small potatoes.
  There was a photographer here in CT years ago who did this, and it was quite successful for him- but this was before microstock. I don't know if the numbers would add up today.
  In my experience, in an audit situation, there will be a lot of pressure put on you to "split the difference" on expenses, even if the expenses are legitimate. That's why you need a good accountant to structure the return to be as bullet proof as possible, and then stand your ground. Otherwise, they'll just keep coming back for more. As long as you can show a direct connection from job to the RV, it's a business expense. If you are using the RV as your only home, it's a problem. You have to look at it from the point of view of the IRS agent looking at the return. He/she will start with the assumption that you are trying to get away with deducting living expenses, and you will be audited. Also, if this doesn't generate a profit, that's a red flag. Avoid red flags at all costs!


Ignore | Logged


WarrenPrice

Dreamstime GaugeiStock Gauge
« Reply #5 on: January 26, 2011, 11:58 »

Thanks J.  I believe you have offered some good advice; especially that about the photographer friend. 
The RV is/would be my second home.  Also, it is not solely for microstock.  I occasionally work an assignment as photojournalist for motorcycle magazines.
The difficult part to understand (IRS-wise) is the time I spend working on spec ... no assignment but shooting for sale.

It is going to take more planning.  I've also been advised by others as to the need to incorporate. 
Lots to think about ... or forget about.   Tongue


Ignore | Logged


jbarber873


« Reply #6 on: January 26, 2011, 12:13 »

Thanks J.  I believe you have offered some good advice; especially that about the photographer friend. 
The RV is/would be my second home.  Also, it is not solely for microstock.  I occasionally work an assignment as photojournalist for motorcycle magazines.
The difficult part to understand (IRS-wise) is the time I spend working on spec ... no assignment but shooting for sale.

It is going to take more planning.  I've also been advised by others as to the need to incorporate. 
Lots to think about ... or forget about.   Tongue
 
  It doesn't matter how you make the income. It's just a case of being able to prove that the RV is a necessary business expense that enables you to do your job. Just another piece of equipment. For instance, if your assignments are time sensitive, the post processing is done in the RV and sent from there.
  Incorporation is not as bad as it might seem. You get a lot more leeway on what is a business expense. There are more forms to fill out, and a few more taxes, but for anyone making money, it's not a big deal. I incorporated after 20 years as a sole proprietor, during which time I was audited almost continuously. Now that I'm a corporation, I just file a w-2 and that's it. The corporation's job is to make the money and pay me a salary. The key is the accountant. Talk to more than one, even if you have been using the same accountant for years- that was my mistake.


Ignore | Logged


Microstock InsiderEnvateo Photo Tools
Pages: [1] Print 
« previous next »
Jump to:  


Related Topics
Subject Started by Replies Views Last post
Business idea, what to do? « 1 2 »
Off Topic
Freezingpictures 41 4350 Last post July 16, 2007, 01:03
by sharpshot
There is a business model I would like to see
General Stock Discussion
litifeta 4 873 Last post January 12, 2009, 03:11
by Clivia
Business name
General Stock Discussion
eyeCatchLight 6 1029 Last post August 10, 2010, 13:30
by jwsc101
Help us with a business name!
General Photography Discussion
QR8Design 17 1753 Last post March 16, 2011, 05:36
by traveler1116
Business Website Questions
Newbie Discussion
tab62 12 1604 Last post April 17, 2011, 11:18
by tab62

TinyPortal v1.0.5 beta 1© Bloc