5 Tax Deductions You Can Get As A Professional Photographer
As a professional photographer, you've been through countless moments in your life trying to capture that perfect photo, testing your patience and resilience in the process. No matter the weather, the temperature, and the location, you're there, trying to capture that single moment that matters so much to you.
With all of that on your shoulders, the last thing in your mind is to deal with tax returns. Fortunately, we're here for you to ensure you make the most when tax season arrives to enjoy plenty of deductions!
So, with that said, let's talk about the deductions you can get as a professional photographer:
1. Equipment and Supplies
If you were to look under the meticulous eyes of the Internal Revenue Service, you'd see that they will expect to see you using the same type of equipment over and over. If you need to buy new equipment, be sure to save the receipts. You may deduct the cost of your equipment, supplies, and other expenses, only if you use them to take photographs in your business.
Remember to also keep all your receipts for film and digital camera equipment, flash units, lighting, tripods, and other items necessary for your work.
2. Professional Organisations
As a more established photographer, you might be an active member of a professional organisation and will have to pay a fee for membership. You'll be able to deduct that fee as a business expense, but you can't deduct a charitable contribution.
3. Travel Expenses
Travel is an inevitable part of your career. After all, you have to go out there and capture those breathtaking, iconic moments.
You can deduct travel expenses as a business expense, but you'll have to follow certain rules to do so.
First, you must be able to show that the travel is related to your photography business. If you're not sure, keep flight, car rental, and lodging receipts and any documentation that shows you were doing business-related activities, such as taking photographs at a concert or a wedding.
Second, you need to be able to identify the destination of your trip. If you're a destination photographer, you'll be able to deduct some of your travel expenses.
4. Advertising and Promotion
Tax law classifies expenses for advertisements, promotions, and other business expenses as deductible, as long as you can prove that they are related to your photography business. So, keep your receipts and invoices for your business-related costs and your photographs and other promotional materials.
5. Home Office
If you use one or more rooms in your home exclusively for business, you can deduct a portion of the expenses associated with your home office as a business expense. You must be able to prove that you're using a room in your house as a separate business location. Keep your utilities, rent, insurance, and repairs receipts, as well as any other documentation you have.
It's worth noting that you can only deduct the portion of your home expenses that are related to your business. So, if you use the dining room in your home as a studio, only the portion of the rent, phone, and utilities you spend for that room can be deducted.
As you can see, there are countless opportunities to deduct expenses from your taxes. And, by keeping your receipts and proof of expenses, you'll never have to worry about improper deductions and end up with a steep fine and a huge headache.
Having an accountant file, your taxes can relieve you of a lot of stress and help you save more money. After all, filing your taxes is just one more thing you have to do this year, so why not get it all done at once and not come back to it until next year?
1 to 1 Accountants offers accountancy services in the UK to help small businesses and freelancers stay on top of their financial needs. Work with us today to tackle your tax needs and more!