Reminder! Record your mileage on January 1!
Regardless of whether your photography is a business or a hobby, you may be able to use it to make a difference in your tax obligation. Specifically, if you are running a photography business, even part-time, the costs to run it can offset your income – not just the income from your photography business but from your day job, as well. If your photography is a hobby, then the costs to support it can be deducted from the income from your photography.
The key is to keep good records, using the tax laws to your advantage. For example, you may be able to deduct your automobile expenses from your taxes. You have two options: you either can track the mileage that you travel for photography purposes to deduct the government rate per mile (currently $0.535); or you can calculate what it costs to operate your vehicle for the year and apply the percentage that you use your automobile for photography to determine your auto expense.
BUT FOR EITHER method, record the starting mileage for your vehicle each year. Check with your tax advisor and the IRS website for more information.Check Photo Attorney on Lynda.com, in the Lynda.com Article Center, and on Twitter!