write-offs

[Brian Gatlin]

This year I have made pretty substantial investments in DSLR gear. The vast majority of it is for bird photography. I have also signed a publishing contract this year for a book I will be producing on my paid work time. The contract stipulates that I will provide 50 bird photos with the book.

The photography takes place generally on my time off (unpaid, after work and weekend time). But it also is done primarily in the relevant area, and the results will end up in this book (which is the motivation for much of the effort). Admittedly, there is a hobby component to this. However, given the publishing contract and its connection with my day-to-day job, is it legitimate for me to write off all the expenses associated with bird photography on my taxes?

[gnats50]

http://en.wikipedia.org/wiki/Section_179_depreciation_deduction

You should really check with a CPA about this.

[WMS]

I would suggest that you read pub. 946 http://www.irs.gov/publications/p946/index.html then discuss the mater with a tax professional you trust. In general you can fill out the forms and depreciate almost anything, however the IRS may not allow the deductions and you then would be charged the tax, penalty and interest on the disallowed deduction. This disablement can be appealed however. IF the Camera equipment is for a hobby it is not deductible, IF it for business or other money making activity then it might be. The intent as well as the results can and do make a difference.

Wayne

[tim]

If you're generating income and it requires equipment that would seem to be a reasonable thing to deduct. If you get paid $200 and spend $5000 on gear though watch out.

[neil_r]

One of the great things about this world is the universality of Tax Law ...... NOT

Where the heck are you?

[Brian Gatlin]

I live in Arizona, USA. I did some poking around, specifically IRS Publication 529 Miscellaneous Deductions. This makes it appear that it might be ok, but like others have advised, I should probably check with a professional.

Here's some of what it says:
"Unreimbursed Employee Expenses
Generally, the following expenses are deducted on Schedule A (Form 1040), line 21, or Schedule A (Form 1040NR), line 9.
You can deduct only unreimbursed employee expenses that are:
* Paid or incurred during your tax year,
* For carrying on your trade or business of being an employee, and
* Ordinary and necessary.

An expense is ordinary if it is common and accepted in your trade, business, or profession. An expense is necessary if it is appropriate and helpful to your business. An expense does not have to be required to be considered necessary.

You may be able to deduct the following items as unreimbursed employee expenses.
[long list which includes:]
* Tools and supplies used in your work."

[WMS]

What is your Day to Day job, I don't foresee any problem with a photojournalist deducting a high end Camera provided that it is used as a part of his/her work. You can also contact the IRS, as I recall they have a field office in Tucson and probably in Phoenix to ask for guidance. The strange thing is that even using the IRS for guidance there is no warranty that you will get correct information. But they are free and one would reasonably expect that the IRS would know there own rules (A useful argument to avoid penalties and to request that Interest be waves should a deduction be disallowed).

Wayne