We’re coming to the one seasonality we all hate – tax time! It’s February in a new year…and for most of you it’s the slow season in terms of incoming business. NOW is the time to start the scavenger hunt for everything you spent money on in 2024. DON’T WAIT UNTIL THE LAST MINUTE!
“It’s income tax time again, Americans: time to gather up those receipts, get out those tax forms, sharpen up that pencil, and stab yourself in the aorta.”
Dave Barry
I’m always amazed at how many small business owners, especially photographers, don’t take the time to review all the costs involved in running their business. I am not an accountant, but here’s a list of things you should review so you don’t miss anything when you’re doing your taxes!
In addition, here are a couple of areas people don’t always realize or simply forget:
- Home Office: Check with your accountant, but if you operate a home office, you can deduct a standard percentage of expenses for home insurance, utilities, mortgage/rent, and home security, just to name a few.
- Part-time labor: If you had a big job during the year and, for example, paid a second shooter for help – it’s deductible!
- Non-proSfit Gifting of Gear: “Donations” is listed above, but look beyond any cash contributions. For example, did you donate any camera gear to a non-profit program like a youth group camera club?
- Lab Costs: “Printing” is listed above, but make sure you look at costs for marketing materials as well as your lab and album company.
Here’s my point – we’re all stuck paying taxes. Don’t wait until the last minute to determine what you owe. And if you don’t have the skills to understand tax law, then get yourself an accountant. You’ve worked too hard to pay more than what’s actually due!
“You must pay taxes. But there’s no law that says you gotta leave a tip.”
Morgan Stanley
“Dear IRS, I am writing to you to cancel my subscription.
Please remove my name from your mailing list.”
Snoopy (Charles Schultz)
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