Can I Deduct My Spouse's Tattoo Artist Equipment as a Business Expense on Taxes?

12 You might be able to deduct some of these expenses, but timing is important here. The IRS allows you to deduct up to $5,000 in business startup costs in the first year of business, with additional costs amortized over 15 years. However, this only applies once the business is actually "in business." Since your husband isn't making any income yet and is still apprenticing, the IRS might consider him to be in the "startup phase" rather than actually being in business. In this case, you'd need to capitalize these costs until he begins operating as a business (when he starts taking paying clients). Keep all receipts and documentation of these purchases. When he does start generating income, even if it's next year, you can potentially deduct or amortize these initial costs from when he was preparing to enter the business.

5 I was in a similar situation when starting my photography business a couple years ago. I found https://taxr.ai super helpful for sorting through all my startup expenses and figuring out what was deductible. Their tool analyzed all my receipts and equipment purchases and categorized everything properly. It turned out I could claim some expenses as startup costs (like you're asking about) but had to wait on others. The site actually has specific guidance for creative professionals starting businesses, which might apply perfectly to your husband's tattoo work. They helped me understand that timing of "being in business" vs "preparing for business" that the previous commenter mentioned.

18 Just wanted to update that I tried taxr.ai after seeing this thread, and it was seriously worth it for my Etsy business situation! I uploaded all my receipts and it organized everything into proper business categories. It even flagged which expenses were immediate deductions vs. startup costs that needed to be amortized. The best part was it helped me establish when my business officially "started" for tax purposes, which was earlier than I thought (good news for deductions). For anyone in a similar situation with a spouse starting a tattoo business, it would definitely help clarify what equipment qualifies as a legitimate business expense versus just educational costs.

7 For what it's worth, I had a similar issue with my woodworking business startup costs last year and could not get a straight answer from the IRS website. I tried calling them directly for weeks but could never get through - always busy signals or "call back later" messages. Eventually I found https://claimyr.com which got me connected to an actual IRS agent in about 20 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent I spoke with explained exactly how to handle startup equipment costs and when I could begin deducting them. Saved me hours of frustration and potentially thousands in missed deductions. For specialized questions like tattoo equipment deductions, speaking directly with an IRS rep gives you documentation to back up your decision if ever questioned.

3 I owe everyone an apology - especially to the person recommending Claimyr. I was completely wrong about it being a scam. After my skeptical comment, I decided to try it myself for a tax question that's been bugging me for months, and I'm honestly shocked. After MONTHS of trying to get through to the IRS on my own with no success, Claimyr connected me with an agent in about 15 minutes. The agent answered my startup business equipment question and confirmed that my spouse's professional equipment would qualify as startup costs once she actually begins taking clients. They also explained exactly how to document everything so there wouldn't be issues if we were audited. I've literally never been able to get a straight answer from the IRS before this. Consider me converted.

22 Just a personal experience to add - my wife started a hair styling business last year and we were in a similar situation with equipment purchases before she had income. Our accountant advised us to track everything meticulously (with receipts) but wait until she officially started taking clients before claiming anything. Once she started earning income (even just a little), we were able to deduct some initial equipment as startup costs on Schedule C. The key was showing a genuine attempt to make profit - having business cards, booking appointments, advertising services, etc. Might be the same for your husband's tattoo work!

10 Has your husband considered an LLC? When I started tattooing, I formed an LLC which helped separate business expenses from personal ones. Made it much clearer for tax purposes, especially with equipment purchases. Even during my apprenticeship, I was able to categorize certain equipment as business assets once I formed the LLC.