using 1099 tax $ to buy photo equipment

[doubledragon]

I have a 1099 for a related business (graphic design) which is my second job (also a 1040), could I add photography service to justify camera & lens write-offs? has anyone tried this?

[Steiny]

I have not tried it but I am planning on doing it. I am sure if you set it up right you can claim some write offs. What my accountant said to me was if you are going to set it up make sure it looks like a real business. Meaning set up a checking account and run everything though that and treat it like you would a real business. Since I typically owe taxes in my business that puts food on the table, I need to get some write off on all the photo stuff I have bought. So I am in the process of setting it up as a real business. Opening a checking account, getting some business cards made, setting up a website are the first part of what I am doing.

I think with the IRS, you can claim a loss on a business for 3 year before they will look at it and perhaps consider it a hobby. So for 3 years I can get some write off. After 3 years, I can just not claim it any more because I seriously doubt I will ever make a profit with all the camera gear I have bought over the years.

So I think it is doable. Consult with your accountant.

[doubledragon]

thanks- i plan on talking to my accountant about it ASAP but didn't want to go in there knowing ziltch.

as for looking legit, i plan on being legit and selling through zenfolio so that shouldn't be a problem.

[dontblink]

the IRS definition is "necessary business expense" Obviously many people push the definition of necessary. Audits are rare, especially one where they actually question your individual business expenses. If you are audited and your deduction is not allowed all you have to pay is the tax you would have paid plus interest, not that big of a deal.

I have purchased camera's and lens as well as other related items, computer memory, etc as a necessary business expense, although my business isn't photography. I have never been audited, but I have no doubt that those deductions would stand up.

As an aside not everything can be expensed in one year, sometimes you have to depreciate. Your accountant can help you,