MicrostockGroup
Microstock Photography Forum - General => Newbie Discussion => Topic started by: packerguy on December 29, 2008, 10:49
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I live in the US and I am wondering if I go on a trip and take pictures that could be used for microstock would any of the trip expenses (mileage, motel, etc.) be tax deductible. How about a trip to a high school sporting event, trips to relatives (my in-laws live in a very scenic area and I could use my parents in “active seniors” shots).
Any guidance in this area would be appreciated.
Thanks,
Mark
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Have you established that you are a business ... or "self-employed?" Are you claiming the income for "sold images?" Check the IRS publications. They explain "self-employment" in very understandable language.
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all the examples mentioned are possible expenses; mileage for trips is one of the more tightly regulated sections, so i dont usually keep track of that at all-- i'll expense entrance fees if my sole purpose is to take pix; but i dont deduct ski lift tix even if i take pix that day
for specifics, the IRS phone line has been helpful -- eg, looking at the difference between earned income [sched C] and royalties [sched E] -- you dont pay FICA on royalties, so that can be useful
steve
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Well I think I found the answer to my own question in 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."
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Well I think I found the answer to my own question in IRS publication ...
Probably the best source of information for all of your tax related questions. While we are happy to offer opinions about what is allowable, I don't think any of us will ultimately be willing to pay any fines or serve any federal prison time resulting from any advice given. ;)
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I f you are explicitly setting up a business the best bet is to get advice from a reputable accountant who knows the tax law and practices of the industry concerned. That way you can be sure everything is set up properly and all the correct records are kept and you won't have any nasty surprises down the track.