Business Expenses

August 05, 2016  •  Leave a Comment

 

Many people already know this, however it’s a nice reminder:

 

One of the advantages of using one of your talents and creating a business around it, whether you’re a writer, an artist, a photographer, whatever talent you have is that as long as you show that you are attempting to make a financial success from said business venture is that you can claim expenses from it on your annual tax return.

 

Image from:
Flickr

 

How do you show you’re attempting to make a financial success?

If you’re a writer:
--Show receipts from mailing manuscripts.
--Show cover letters to editors.

--Show proof of published work

 

If you’re a photographer:
--Show that you have a retail website with proof of sale with receipt from domain host.
--Show that you are showing your work for sale.

--When you sell either from your retail site or from your local shows, keep a record of said sales.

 

When you purchase anything for your “business,” keep your receipts.

If you travel for your business you MAY BE able to claim some of your travel expenses..

Again, make sure you hold onto your travel records and that you are able to prove you traveled for business.  For photographers, this is fairly easy:
You can identify the place you traveled with receipts and back up the records with photographic proof.

 

This is yet another reason to consider operating your passion as a business.  I’m not suggesting doing anything that isn’t legal and if, like me, you’re at all concerned about doing your taxes correctly, you should look for an accountant you trust.  They can help you sort through all the ins and outs of business expenses.

 

In the meantime:
Focus on what’s ahead of you.

--

Chris



 


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