Looking forward to filing your taxes on Tax Day? Well, to be earnest, who is? The good news is that, if you own and run a photo biz, there might just be several tax deductions for photography businesses that you are eligible for. Of course, take our advice below as just what it is: friendly advice, dispensed with the best intentions at hear; understand, however, that such advice is not meant to replace professional consultancy from your accountant and/or lawyer. That being said, provided you’ve kept good records of your spending throughout the past fiscal year, here are seven such deductions you should probably look into.
1. Car costs
It’s likely you drive to get to your clients or move around the area, from one shoot to the next. You may be able to pass off your automobile expenses as one of the tax deductions for photography businesses. You can track the mileage on your car, when using it for photography and apply the government’s per-mile rate to each mile driven for photo purposes (the current rate stands at $.565). Alternatively, you can work out the percentage of time that you drive your car for photography business purposes and deduct the costs for that span of time from your overall car maintenance costs.
2. Travel costs
Similarly, you can count all travel expenses that are accounted for and were incurred for your art as tax deductions for photography businesses. Of course, this means you will have to start storing and filing plane tickets, car rental receipts, taxi fare and public transport receipts, restaurant bills, hotel bills, and just about any piece of paper that proves you spent money while away traveling for a shoot.
3. Housing expenses
This one is probably going to come in handy for any photographer that runs a studio or office right out of their own home. You need to calculate how much space inside your home is allotted to your photography business, work out the costs for maintaining that particular amount of space and then file for deductions from your mortgage, home insurance, bills (for electricity, water, and anything else).
4. Office/studio costs
This is one of those tax deductions for photography businesses that’s mutually exclusive with another one – namely, the one listed above. In other words, you can’t get a tax deduction both for a home office/studio and for such a space that you’re renting out elsewhere. However, if you don’t operate your office and/or studio from the comfort of your own home, you will be able to file for a deduction for these separate business expenses.
5. Phone lines
In order to get tax deductions for photography businesses for phone lines, you need to have a separate line that you only use for your photography business. Also, it goes without saying that you need to keep a clear record of the calls you’re making, be they local or long-distance, in order to talk with clients or arrange other aspects that have to do with your business.
6. Internet and site bills
No, you can’t get all your internet bills written off as business expenses, but if you own a site dedicated to your business (and we can only hope that you do, given the fact that this is 2014) a fraction of those costs become deductibles. Figure out how much bandwidth you use for website maintenance, then file for a deduction.
Photography is one of those fields in which an ongoing education really goes a long way. That’s why the government sees photography workshops, seminars, and courses as potential tax deduction areas. Keep good track of those expenses and make sure to include them all, when you file for taxes.