Apparently the IRS defines hobbies as an activity which you don't seek to derive income from, and you are no allowed to claim these deductions from tax.
However if you DO intend to earn money from photography, even if you make a loss or don't earn any revenue - you CAN deduct these expenses from your personal income.
http://m.lifehacker.com/5901074/got-a-ho...-tax-break
I recommend getting advise from an accountant though before you try anything otherwise you might end up with the IRS on your tail.
In the US with a Hobby "business" you can you can write off equipment costs and travel expenses etc upto the income that hobby made, so if you make $1500 from photography, you can off-set the cost of any equipment you buy that year or printing expenses etc against it, but only up to that $1500, hobby businesses cannot declare a loss and use that as a tax deduction.
Now if you form a business you can use any business related photography expenses as a write off, however now you need permits, insurance, licenses etc.
Sometimes, its more profitable to lose a little bit of money than it is to make a little bit.
(Apr 14, 2012, 10:31)EnglishBob Wrote: [ -> ]In the US with a Hobby "business" you can you can write off equipment costs and travel expenses etc upto the income that hobby made, so if you make $1500 from photography, you can off-set the cost of any equipment you buy that year or printing expenses etc against it, but only up to that $1500, hobby businesses cannot declare a loss and use that as a tax deduction.
I thought that was the case in Oz too...
Anyways, probably better to see your accountant instead of listening to some random advice off the net.
I was an accountant for 14 years. Haven't worked as one since moving to the US, but I do keep up on tax laws that affect me.
EnglishBob Wrote:I was an accountant for 14 years. Haven't worked as one since moving to the US, but I do keep up on tax laws that affect me.
That's fantastic to know!
