Quick, and hopefully easy to answer.

[j_miguel_y]

I just found this forum and it seems like a great one. Don't know why I never looked for one like this before. I'm sure this question has been asked many times before, but here it goes.....

My situation is that I am going into photography as a side business (used to own a lab and did photography many years ago as my main business). I've gotten a resales number and such. I didn't get a DBA because I'm using my actual name as my business, as written in my resale.

The question is, would I be able to write off any of my purchases for photography equipment, like my computer, camera, lenses, etc? My accountant said to wait until I make $50 on my side business before I think about writing anything off, and I just can't see how that holds? I'm thinking it's because I automatically get almost a $7k write-off because I'm married and have kids? I would need to write off MORE than the $7,000 I automatically get, is that right?

Thanks in advance.

kafene.

[Arlene M Passalacqua]

Hi, and welcome to the Small Business Forum.
Did you ask your accountant how startup costs are handled? Are these purchases for sole use of the business? You're not getting that computer so the kids can do homework on it too, are you? Don't confuse the itemized deductions on your 1040 with deductions you have as a business. You probably should go back to step one, and make a clear definition of your business, clearly separate your expenses by having a separate bank account, separate credit card if you use one, and keep your books separately, don't mix things with your personal use, don't pay for business expense out of your personal checking account or on your personal credit card (the reverse is true too). It's not unusual for a business to show a loss in the first year of operations, but it often brings up the question whether or not it's a serious business. The IRS could easily classify your photography as a hobby if you're not strictly running it like a for-profit business. If they do, then you can't declare a tax write-off for your losses.