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Author Topic: Future Business- Tax Concerns  (Read 2528 times)

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tab62

« on: March 10, 2011, 16:50 »
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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


« Reply #1 on: March 10, 2011, 17:30 »
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Writing off vacations and rooms in your home only causes flags to go up if you actually report them as those expenses.... just saying....

« Reply #2 on: March 10, 2011, 17:40 »
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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

« Reply #3 on: March 10, 2011, 17:50 »
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I have been self-employed for 25 years, first 20 as scientist and last five as photographer.  I have used my home as business place and deducted it in the past; I have taken many trips and deducted them; just be fair and reasonable, have documentation for everything and you will have little problems.  A visit by IRS is not end of world, just stressful; provided you have been honest.

lisafx

« Reply #4 on: March 10, 2011, 18:30 »
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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. 


 

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