Mar 30, 2005, 7:03 PM
Post #1 of 8
gear and tax's
I have seen this on the forums before but i could not find it. This season I am running my photography for the DZ as my company and was woundering form those of you who already do this how I go about or you go about claiming all the stuff you buy for the season. I do save all the receipts and invoices for this tax season. But did you go get a tax ID # or how did you do it..
(This post was edited by aerialcameraman on Mar 30, 2005, 7:04 PM)
all depends on were you are at, i was looking into it and for ohio you would have to:
1. get a federal employer id number 2. "register" your busness name (if sole proprietor) it would be clasified as a "trade name" 3. aply for a vendors liscence from either the county or the state dependingon if you are going to only sell at one dz or if you will travel and have no "fixed" location....
things to remeber though, if you go this route you will have to pay sales tax on all your sales, so a $20 video payout is reduced by $1.30 if your local sales tax is say 6.5%.... then you have to claim that money as income so then you get taxed on it at the end of the year, but you can count travel to the dz and your equipment so it's a trade off, i thought about it to reduce my overall tax payment by being able to deduct alot of my skydiving equipment but the jury is stil out for me, not sure if it's worth the trouble abd all that, need to talk to a tax lawer/acountant about it......
good luck if you do go that route, probly beable to find some inf on your states web page probly under the small busness section just for refrence her ei ohio's site, might beable to get sme info off it that might help.....
What if the DZO is the one running it but you are a sub-contractor like most DZ's have. How do you go about claiming your stuff you buy?? I live in Indiana.. I have heard of people doing this all the time i am just woundering how you all have gone about doing something like this..
I live in Georgia and have wriiten stuff off on my taxes for the past two years. As far as I am aware, for Georgia of course, you can write these things off. The wrtie offs do go under a special part of the tax form, not sure where as my father handles all this. But, I have wriiten off gear (rig, jump suits, altimeters, cameras...), travel expense, packing, cell phone charges pertaining to my work. Main thing is keep all your receipts. Get receipts for your packing. You can go and get a cheap reciept book for this. Just remember, if you pay any one packer more than $500.00 in one year, you are required to give them a 1099. (work this out somehow) You can make yourself into a cororation, but this is not always helpful. In my case it would not save me any money as I do not make squat as a professional student. But there are some liability issues that you can be "shielded" from throgh incorporation. Again if I get sued, there is nothing there anyway, so I will worry about this issue later. These are just some of the things I have found along the way, of course I would advise that you talk with an accountant who knows the laws for where you live.
In NC you don't have to do any of the registering. A company can be registered under your own name and your tax ID will be your social by default. Also your company can show up to three years of loss before gaining any suspicion. After that point you better show some income from your company. A good thing to remember to is that your computer that you bought 4 years ago can be put into a depreciation schedule and still be written off this year. So can that rig you bought 2 years ago that main that cypres that reserve that jumpsuit all those jumps (training) wind tunnel time, coach fees, camera accesories, film, your helmet, your gatorz, your goggles...get my drift. By putting them into a depreciation schedule you're showing them as an expense on goods to your company. Obviously jumps and coaching wouldn't go in that schedule those would go into business expenses. But you get my drift. I hope you saved your receipts...:)