I want you to be aware of all the tax deductions that are available to you as a photographer. My goal is to take as many deductions as I legally can to save you money. Photography is a unique business and there are several business deductions to take advantage of. Some deductions are complex to calculate, and these are best to discuss in detail during the interview process. Here are some common photography business deductions to consider.
2nd Shooters / Editors / Subcontractors
Payments made to 2nd shooters, editors, or anyone else you pay for contract work is a tax deduction.
Vehicle expenses can be deducted by either taking a standard mileage rate or actual expenses. The standard mileage rate is commonly used as this is the easier of the two methods to keep track of. There are apps such as MileIQ that can make tracking your business miles easy. Let's discuss which option would be best for you.
Home Office Deduction
The IRS rules for the home office deduction can be complicated. The office does not have to be an entire room to qualify. The home office can be a portion of a room and still qualify for the deduction. However, the office area in your home must be used for the business on a regular basis and only be used for business purposes. Let's discuss this in detail to maximize your home office deduction.
Other Common Photographer Deductions
- Cell Phone
- Equipment (Camera, Lenses, Lights Etc.)
- Legal & Professional Fees
- Office Supplies
- Rent (Studios, Equipment etc.)
- Stylists / Makeup
Qualified Business Income Deduction
Photography services qualify for the Qualified Business Income Deduction. This deduction is a freebie from the government. This means you don't have to spend any money in order to take the deduction
The deduction is complicated to calculate, but in the simplest terms it's a deduction worth 20% of your net business income. The deduction is not taken on the business return, but instead it flows through to your personal return.