Taxes

Tax season is here and gone for me! I did pretty good in 2008 and kept all my paperwork up to date so I’m not having a very stressful time. I love being a photographer and having my own business, but there is a side to this that is not very happy( the amount of taxes I have to pay is ridiculous! So I have to be smart and really look into what I can use for deductions. I met with a financial advisor for the tax filing process and was very happy with the results. When I gave him my paperwork for the business he said: “Wow, you are very organized” – I had to laugh – I am organized! I actually made an excel spreadsheet and added tabs for income statement, expenses by month, income vs expense chart, and I have now added expenses by categories. If you are just beginning this venture, it is a LOT easier to do your taxes if you divide your expenses by categories. Here is the list of some categories I use:

• Equipment: Include in this category all new equipment purchased to produce images. For example: filters, tripods, electronic devices, etc
• Repairs: Include all repair and parts costs related to the photographic equipment
• Publications: Newspapers and magazine subscriptions, books, etc
• Advertising: Any direct fees associated with advertising such as design and printing costs, etc.
• Professional Education: Include educational photo workshops, seminars and private instruction fees with an explanation.
• Proprieties (props): Objects purchased (and photographed) to enhance a shoot.
• Mileage: This one is big in my opinion, you should really count your miles. What I do is I keep a book in my car and write the starting mileage and the ending mileage. At almost .60c a mile it really adds up!
• Professional Services: Include CPA fees, legal fees and membership in various professional organizations.
• Office Expenses: Everything needed to keep the business: phones, computers, software, paper, pens, stamps, etc.
• Supplies: Anything directly related to producing an image like batteries, CF cards, etc…
• Meals: Only about 50% of meal costs are tax deductible so I limit this one.
• Access Fees: Access fees are costs related to actually covering an event. For example, when I shoot at the Conservatory at the Como Zoo, I have to pay a fee and that would go under this category.

There are other categories such as Rent, Utilities, Charitable Donations (cash only category) but you should see the ones that are applicable to you. By using categories you will make your tax filing much easier!