A Photog’s Guide to Year-End Tax-Deductible Purchases – See more at:



A Photog’s Guide to Year-End Tax-Deductible Purchases

13/01/2014 10:45 by The Law Tog 49

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As the year end approaches all small business owners should start thinking about tax deductions!  Depending on the business structure and tax liability some income taxes may already have been paid, for others they haven’t paid a dime.   This is where your business savings and tax deductions come in!   Take a gander at the top tax deductions you don’t want to forget about and evaluate your budget, business plan and needs for 2014.

Snag 30% off contracts + many other great deals today – Cyber Monday – see the list here!! How do I keep track of these?

It is best to keep a running record book of the entire year with all receipts and notes referencing the event, client or expense.  Use the following deductible categories as a way to organize and divide up your expenses into a manageable mess of receipts, instead of an unmanageable one (?). Seriously, get a structure and workflow to keeping up with all expenses.  Every penny spent that is deductible is potentially a penny saved.


What is deductible?

Keep in mind that not all expenses for a business are deductible.  Not every expense within one of the following categories may be deductible either.  The goal for this list to provide a structure for organization, guide for end of year purchases, and give a bird’s eye view of what is to come with filing your taxes.  Always always always consult a CPA or tax attorney for guidance

1. Equipment

Whether Nikon, Canon or Sony, the end of the year is full of sales and deductible expenses for equipment used in your business.  This can include cameras, computers, lenses.  Word to the wise: Don’t buy just to buy for a deduction. Buy because you have saved for the item (or will be instituting savings to pay it off in your cost of doing business) and need the item.   Equipment may also be subject to depreciation deductions

See: What’s In My Bag?

Note: Equipment also includes props, backdrops, lights, etc.  Not just your camera and lenses! 


2. Education

Educated directly related to the maintenance or improving of skills required to run the business.  Note: Education that qualifies you for a new job is NOT deductible.  It must be for an existing business.  Education can include webcourses, in-person conventions, seminars, tradeshows, 1:1 with a Business Consultant , and workshops.  Maybe you need some help on designing albums or tutorials for photoshop, create a running list of educational resources you’d like to tap into and jump on them after making an educated decision.


3. Automobile & Mileage Expenses

There’s a few things under this deduction that all small business owners should be mindful of; mileage, expense of vehicle used in business, tolls and parking costs.

Tip: To keep track of mileage for each session either write it down immediately, or reset odometer and let it run until done with a session – then take a picture and email it to yourself.


4. Software Purchases

Post-processing (Lightroom 4, Photoshop CS, Photoshop Elements) and accounting  (Quickbooks, Quicken) softwares are deductible as long as purchased and used in the same year.  Software is typically written off for multiple years as it will service the business for multiple years.  However, Section 179 of the tax code allows for small business owners to fully deduct off-the-shelf software in the year it is purchased.


5. Marketing Expenses

Expenses incurred directly to advertising and marketing at deductible for your business.  This includes business cards, magazine advertisements, digital marketing tools (StickyAlbums).  Consider drafting 2013’s marketing plan now to seek out discounts on marketing materials and pre-purchase to use for deduction in 2012.


6. Legal/Professional Fees and Association Dues

Fees, business books and other related expenses to hiring and using lawyers, consultants, and tax professionals may be deducted for the current year.  Also, dues paid to a professional association related to the business are deductible.


7. Taxes

Taxes that your business incurs during operation may be deductible.   These include sales tax on itmes purchased for daily operations of the business (as part of cost of the item itself), employment taxes, and real estate taxes.  This is one area I strongly recommend the help of a CPA or tax attorney.


8. Charitable Donations

Donations made to a charitable entity may be deductible.  Also, and this goes hand-in-hand with marketing costs, but costs that provide goodwill to the community (such as sponsoring a sporting or organizational event) are deductible as long as it is easily seen that your company is the sponsor.


9. Home Office & Office Supplies

The space utilized in the home and percentage of phone, internet and utility usage to run the business are deductible.


10. Business Fees

ATM fees, credit card fees and bank charges for a business account are potentially deductible.


Recommended Purchases for Your Photography Business

Here are some of the top recommended purchases that can be used as deductions.   The key is to be smart and not simply but to reduce income tax liability. Make sure all of these purchases fit into your business plan for success.

Education Equipment Accounting Software Online contracts (Consider going paperless) Marketing Materials   Get Rachel’s tips in your inbox + a free eBook!
.social-icon{ display:inline-block; width: 120px; float:left; } TweetAuthor informationRachel Brenke, The Law TogRachel Brenke, The Law TogRachel Brenke, owner of The Law Tog, has many hats including author, photographer, lawyer, business consultant, social media marketing strategist, just to name a few. She is currently helping creative industry professionals all over the world initiate, strategize and implement strategic business and marketing plans through various mediums of consulting resources and legal direction.


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