Your time and taxes

[alabama1980]

Tis the season for such questions...

While reading another post about doing "free" work a question came to mind that I hoped some of you brains around here could answer.

If a photographer donates their talents and resources, are those claimable as deductions on taxes?

Like if donate a shoot for churches, relay for life, march of dimes etc can you deduct what the job would normally run?

[Tigershark]

Nope just the mileage and that is even a a reduced rate. Labor is not deductible. If you had prints made then the costs of the prints would be deductible but that's about it. Sorry

[asysin2leads]

Originally Posted by Tigershark

Nope just the mileage and that is even a a reduced rate. Labor is not deductible. If you had prints made then the costs of the prints would be deductible but that's about it. Sorry

I believe mileage for non-profit is 14.5 cents/mile.

[T2000]

http://www.irs.gov/publications/p526...blink100049652

[sfaust]

Originally Posted by asysin2leads

I believe mileage for non-profit is 14.5 cents/mile.

While the IRS lists 14 cents per mile, you can deduct the actual costs which are surely to be more.

[alabama1980]

Good info! Thanks guys!

[BscPhoto]

I asked my accountant that same question last year. I thought that my hourly rate was enough to go off of. I think it's bull crap

[sapearl]

Hopefully he advised you against deducting your hourly rate. Claiming it would certainly raise a flag of interest, although I agree with your sentiments.

I shoot for several non profit and charitable organizations in the area but only deduct the cost of my materials, and mileage, per my CPA's instructions. I donate framed work to the local PBS station's annual fund raising auction, but again I can only deduct the cost of the materials that went into each, and not the price I assigned to each.

Originally Posted by BscPhoto

I asked my accountant that same question last year. I thought that my hourly rate was enough to go off of. I think it's bull crap

[sfaust]

One way to get the full deduction which includes your time, is to bill the client your normal rates. Once you receive the payment from them, donate it right back to them. They have the benefit of being able to claim your fees as expenses, and the photographer has the benefit writing off the full donation. It's far better for both parties over donating free time IMO.

[egordon99]

Except you'd have to add the payment in as income to you, so it would be a wash in the end.

Otherwise, what would stop you from asking for $30,000 payment and reaping a $3000 tax "credit" (assuming your effective tax rate is 10%) ?

Originally Posted by sfaust

One way to get the full deduction which includes your time, is to bill the client your normal rates. Once you receive the payment from them, donate it right back to them. They have the benefit of being able to claim your fees as expenses, and the photographer has the benefit writing off the full donation. It's far better for both parties over donating free time IMO.

[sapearl]

I like the sound of that Stephen........ but are you sure this is legal? If that were the case everybody would be doing it .

Originally Posted by sfaust

One way to get the full deduction which includes your time, is to bill the client your normal rates. Once you receive the payment from them, donate it right back to them. They have the benefit of being able to claim your fees as expenses, and the photographer has the benefit writing off the full donation. It's far better for both parties over donating free time IMO.

[egordon99]

See my post above, it's "legal" if you claim the payment as income (and pay taxes on it)

[stathunter]

Originally Posted by sapearl

I like the sound of that Stephen........ but are you sure this is legal? If that were the case everybody would be doing it .

legal.........who's asking?

[sapearl]

...hehehehehehe.....

Originally Posted by stathunter

legal.........who's asking?

[egordon99]

Doesn't matter who is asking, it's illegal, UNLESS you also add the payment in to your income for the year (which nets you ZERO in the end)

People always suggest this as a way to get around the IRS's rules on deducting time, and I always hope someone points out that it's wrong. But hey, if you want to get audited