Author Topic: TAXES 2011 - Is anyone writing off agency fees? (Read 4349 times)

click_click · « **on:** March 23, 2012, 09:50 »

Out of curiosity, does anyone of you write off the agencies' commissions as your business expense?

Don't we technically pay them to market and license our images?

ShadySue · « **Reply #1 on:** March 23, 2012, 09:52 »

Quote from: click_click on March 23, 2012, 09:50

Out of curiosity, does anyone of you write off the agencies' commissions as your business expense?

Don't we technically pay them to market and license our images?

I don't declare gross income, just the money I actually get, so that wouldn't be relevant.
It probably depends on your country's tax laws how it should be done.

click_click · « **Reply #2 on:** March 23, 2012, 09:55 »

Got it. Thanks.

Microbius · « **Reply #3 on:** March 23, 2012, 10:22 »

Ditto, if you want to write off the agency's percentage you would have to declare the whole amount (your percentage and the agency's) as income then the agencies part as expenses.
Seems pointless and difficult/ impossible given how little info about sales we get from some agencies. I just declare what I get.

Sean Locke Photography · « **Reply #4 on:** March 23, 2012, 10:24 »

Yep, what they said.

RacePhoto · « **Reply #5 on:** March 23, 2012, 10:26 »

Quote from: ShadySue on March 23, 2012, 09:52

Quote from: click_click on March 23, 2012, 09:50
Out of curiosity, does anyone of you write off the agencies' commissions as your business expense?

Don't we technically pay them to market and license our images?

I don't declare gross income, just the money I actually get, so that wouldn't be relevant.
It probably depends on your country's tax laws how it should be done.

Ask your accountant everyone...

What agency fees? I'm same as Sue, I declare Income and Expenses. I also depreciate equipment over the years.

I don't see how agency percentage is any of that. If someone knew how much every item sold for and deducted that from the gross, I suppose. Which would mean recording the actual sale price of every image sale for every agency. I don't think I'm interested, even if it was possible. I don't think that data is available.

click_click · « **Reply #6 on:** March 23, 2012, 11:41 »

OK, ok I got it. It was still early here (and I needed the money...)

Mantis · « **Reply #7 on:** March 23, 2012, 13:55 »

Quote from: Microbius on March 23, 2012, 10:22

Ditto, if you want to write off the agency's percentage you would have to declare the whole amount (your percentage and the agency's) as income then the agencies part as expenses.
Seems pointless and difficult/ impossible given how little info about sales we get from some agencies. I just declare what I get.

If you did that you would claim a HUGE loss each year and in the USA the IRS would eventually (I think it's three years or thereabouts) deem your business "not a for profit" and you cant take a loss anymore.

Microbius · « **Reply #8 on:** March 24, 2012, 02:48 »

Quote from: Mantis on March 23, 2012, 13:55

Quote from: Microbius on March 23, 2012, 10:22
Ditto, if you want to write off the agency's percentage you would have to declare the whole amount (your percentage and the agency's) as income then the agencies part as expenses.
Seems pointless and difficult/ impossible given how little info about sales we get from some agencies. I just declare what I get.

If you did that you would claim a HUGE loss each year and in the USA the IRS would eventually (I think it's three years or thereabouts) deem your business "not a for profit" and you cant take a loss anymore.

errr... no you wouldn't because you would be declaring the whole amount paid for the image as income then subtracting, say 85% as expenses. Your profit would be the same as if you just declared your share of the price paid(?)

click_click · « **Reply #9 on:** March 24, 2012, 08:31 »

Quote from: Microbius on March 24, 2012, 02:48

Quote from: Mantis on March 23, 2012, 13:55
If you did that you would claim a HUGE loss each year and in the USA the IRS would eventually (I think it's three years or thereabouts) deem your business "not a for profit" and you cant take a loss anymore.
errr... no you wouldn't because you would be declaring the whole amount paid for the image as income then subtracting, say 85% as expenses. Your profit would be the same as if you just declared your share of the price paid(?)

That's what I thought.

Mantis · « **Reply #10 on:** March 24, 2012, 16:31 »

Quote from: Microbius on March 24, 2012, 02:48

Quote from: Mantis on March 23, 2012, 13:55
Quote from: Microbius on March 23, 2012, 10:22
Ditto, if you want to write off the agency's percentage you would have to declare the whole amount (your percentage and the agency's) as income then the agencies part as expenses.
Seems pointless and difficult/ impossible given how little info about sales we get from some agencies. I just declare what I get.

If you did that you would claim a HUGE loss each year and in the USA the IRS would eventually (I think it's three years or thereabouts) deem your business "not a for profit" and you cant take a loss anymore.
errr... no you wouldn't because you would be declaring the whole amount paid for the image as income then subtracting, say 85% as expenses. Your profit would be the same as if you just declared your share of the price paid(?)

I am not clear then on what the OP means. I looked at it (like you did) as a wash too, so why ask the question? So I made the assumption (probably wrongly) that the OP was asking just about writing off the agency fees to help him lower tax obligations, otherwise why post a questions like this? But you are completely right in your response and I totally agree with you. I just was trying to figure out why the OP asked that question when, in reality, it would be a wash. He/she may have meant something different perhaps?

click_click · « **Reply #11 on:** March 24, 2012, 16:57 »

I am not clear then on what the OP means. I looked at it (like you did) as a wash too, so why ask the question? So I made the assumption (probably wrongly) that the OP was asking just about writing off the agency fees to help him lower tax obligations, otherwise why post a questions like this? But you are completely right in your response and I totally agree with you. I just was trying to figure out why the OP asked that question when, in reality, it would be a wash. He/she may have meant something different perhaps?
[/quote]
I had my brain turned off when I started this thread. Sorry.

What I meant was if I can write off the agencies' commission off of my reported income on the 1099's.

Of course, that's absolutely absurd!

I understand that. In order to write off the agencies' commission as fees I have to report my "gross income", then deduct the agencies' commission (hopefully this is how it works, I assume my brain's turned on now...).

Therefore it would end up being the same like reporting just my 1099's.

So I guess there is nothing else to see here anymore. Move on people.

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Author Topic: TAXES 2011 - Is anyone writing off agency fees? (Read 4349 times)

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ShadySue

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Microbius

Sean Locke Photography

RacePhoto

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Mantis

Microbius

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