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Microstock Photography Forum - General => General Photography Discussion => Topic started by: leaf on February 03, 2009, 09:44

Title: 10 tax deductions for freelancers
Post by: leaf on February 03, 2009, 09:44
Ok, well nothing ground breaking here but freelanceswitch.com has a list of 10 things to make sure you deduct when doing your taxes.

Other make sures:
internet usage
camera gear
if you have your office in a seperate room that is only used as your office you can deduct a % of the heating, house rent, electricity etc.  The % you can deduct is the % of the house your office takes up.
insurance for camera gear
web hosting / ad for your photography related website

Any other deductions people might forget about?
[freelanchswitch.com (http://freelanceswitch.com/the-business-of-freelancing/10-deductions-freelancers-can-grab/)]
Title: Re: 10 deductions for frelances
Post by: fullvalue on February 03, 2009, 09:57
Doublecheck with an accountant but log mileage.  Much of it could be deductible.

Props, those little things really add up.

Models, whatever compensation you give them is deductible.
Title: Re: 10 tax deductions for freelancers
Post by: RT on February 03, 2009, 10:49
if you have your office in a seperate room that is only used as your office you can deduct a % of the heating, house rent, electricity etc.  The % you can deduct is the % of the house your office takes up.

Be careful of this if you live in the UK and have a mortgage, seek advice from an accountant and they'll explain what I mean.
Title: Re: 10 tax deductions for freelancers
Post by: WarrenPrice on February 03, 2009, 11:14
if you have your office in a seperate room that is only used as your office you can deduct a % of the heating, house rent, electricity etc.  The % you can deduct is the % of the house your office takes up.

Be careful of this if you live in the UK and have a mortgage, seek advice from an accountant and they'll explain what I mean.

I don't know that it is difficult to document but do know that it is a key to getting audited in the US.
Title: Re: 10 tax deductions for freelancers
Post by: gaja on February 03, 2009, 11:34
if you have your office in a seperate room that is only used as your office you can deduct a % of the heating, house rent, electricity etc.  The % you can deduct is the % of the house your office takes up.[freelanchswitch.com ([url]http://freelanceswitch.com/the-business-of-freelancing/10-deductions-freelancers-can-grab/[/url])]


Not completely correct for Norway. Not anymore. According to the new rules you have to find out how much your entire house/flat would cost if you rented it. Then you have to figure out how much your office would cost to rent on the open marked. Then you calculate a percentage. This percentage is what you use to deduct heating, electricity, external maintenance (e.g. painting the house), property tax, water bills, and so on.
Title: Re: 10 tax deductions for freelancers
Post by: michealo on February 04, 2009, 10:04
software
attendance at conferences or shoots that are directly related to your work
equipment insurance
Title: Re: 10 tax deductions for freelancers
Post by: tan510jomast on February 04, 2009, 18:40
In Canada this can also become a bit of a problem without advice from a tax-specialist. especially when the place you deduct is your home. if you deduct a portion of the mortgage, for business, this can change the whole picture of Principal Residence, when you sell. You are not taxed on profit of a Principal Residence, but if you start deducting mortgage etc , it can be deemed like Rental Property. Upon sale , this could be subject to Capital Gain Taxes.
I think one would be wise to talk to a Public Accountant to decide if it is advantageous or not .
I suppose such implication are similar in UK as Canada takes after the British system.
Title: Re: 10 tax deductions for freelancers
Post by: yingyang0 on February 04, 2009, 19:57
if you have your office in a seperate room that is only used as your office you can deduct a % of the heating, house rent, electricity etc.  The % you can deduct is the % of the house your office takes up.

Be careful of this if you live in the UK and have a mortgage, seek advice from an accountant and they'll explain what I mean.

I don't know that it is difficult to document but do know that it is a key to getting audited in the US.

That's exactly what I was thinking. If you're nickel and dimeing 'business' deductions so much (and these look like non-deductible personal expenses by IRS standards) then you're sure to be audited.
Title: Re: 10 tax deductions for freelancers
Post by: MatHayward on February 04, 2009, 20:02
Any trips you may have taken that resulted in photo's you are selling.  I'm pumped to deduct a trip to Africa this year!

Cell phone bills.  Computer expenses.  Blood pressure medication  ;D
Title: Re: 10 tax deductions for freelancers
Post by: tan510jomast on February 04, 2009, 21:47
Any trips you may have taken that resulted in photo's you are selling.  I'm pumped to deduct a trip to Africa this year!
Cell phone bills.  Computer expenses.  Blood pressure medication  ;D

MattH,
blood pressure medication  ;D   did the debate we do here induce some of that BP?  ;)

Actually, i did go to Africa. And most of my initial sales in micro stock are shots of tunisia . But i haven't deducted the trip, because  my sales havent paid enough to pay off the cab fare from my house to the airport,  ;D    maybe given time it will.  :)

seriously, if you went on a trip,  you're ask, "business or pleasure?"
i wonder if you said, "pleasure", if IRS would consider that non-deductible.
if you said, "business". would the customs of the country you visit treat your entry differently.
can anyone here tell us whether it makes any difference to say "Business" or "Pleasure"?

matt T
Title: Re: 10 tax deductions for freelancers
Post by: packerguy on February 05, 2009, 08:53
Below is a quote from IRS publication 463.

"If your trip was primarily for personal reasons, such as a vacation, the entire cost of the trip is a nondeductible personal expense. However, you can deduct expenses you have while at your destination that are directly related to your business."

I am new to this so how this applies to microstock photography, I don't know.  I think one would need to consult with an accountant.
Title: Re: 10 tax deductions for freelancers
Post by: tan510jomast on February 05, 2009, 10:42
Below is a quote from IRS publication 463.

"If your trip was primarily for personal reasons, such as a vacation, the entire cost of the trip is a nondeductible personal expense. However, you can deduct expenses you have while at your destination that are directly related to your business."

I am new to this so how this applies to microstock photography, I don't know.  I think one would need to consult with an accountant.

Yes, i think that sounds right. i was in accountancy donkey years ago ( my dad's accountancy business in Asia), i just thought perharps the taxation laws have been amended, or different here in US and Cda . cheers packerguy for responding.
Title: Re: 10 tax deductions for freelancers
Post by: yingyang0 on February 05, 2009, 12:26
Below is a quote from IRS publication 463.

"If your trip was primarily for personal reasons, such as a vacation, the entire cost of the trip is a nondeductible personal expense. However, you can deduct expenses you have while at your destination that are directly related to your business."

I am new to this so how this applies to microstock photography, I don't know.  I think one would need to consult with an accountant.
That is correct for US tax codes, but rest assured that you're odds of being audited go up exponentially the more of these "business" expense deductions you take. However that's not saying much because the odds of an audit are abysmally low (it's less than 1% anymore).