How to Write Off Photography Equipment for My Sole Proprietorship Business?

So I've been doing some side gigs as a photographer this year and have been making a bit of money - less than $1,350 total. I've kept invoices for all my clients, but honestly I'm pretty clueless about taxes and business stuff. Everything's been cash payments so far. Here's what I'm wondering - I invested in some pretty expensive photography equipment this year (a couple nice lenses, a professional tripod, some lighting gear). Can I set up a sole proprietorship now and write off these expenses on my taxes? Or do I need to establish the sole proprietorship first and then only write off equipment I buy after that? I don't have any formal business structure or anything yet. Just been doing these random gigs when people ask me. Any advice would be super helpful because I'm totally lost when it comes to this tax stuff!

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18 comments

Lilah Brooks

•8M

You don't actually need to "set up" a sole proprietorship - you already are one! If you're doing photography work and getting paid, congratulations, you're operating as a sole proprietorship by default. For tax purposes, you'll report this income and your business expenses on Schedule C of your tax return. Since you've been keeping invoices, you're already on the right track. Those equipment purchases (lenses, tripod, etc.) are absolutely deductible business expenses as long as you're using them for your photography work. You can deduct them in the same tax year you purchased them, even if you bought them before you started making money. Just make sure to keep good records of all your expenses - receipts for the equipment, mileage if you drive to photo shoots, any editing software, website costs, etc. The fact that you've been paid "under the table" doesn't matter for your deductions, but you do still need to report all that income!

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Lilah Brooks

•8M

If you use equipment for both business and personal purposes, you can still deduct it, but only the percentage used for business. For example, if you use a camera 70% for paid photography work and 30% for personal photos, you can deduct 70% of its cost. Just be reasonable with your estimates and keep notes on how you determined the business-use percentage. As for your second question, income taxes follow a separate system from sales tax, so you don't need to worry about collecting sales tax to deduct your business expenses. However, depending on your state, you might need to collect sales tax from your customers if you're selling physical products (like printed photos). For strictly photography services, many states don't require sales tax, but check your specific state's rules.

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Kolton Murphy

•8M

I was in the exact same boat last year with my side hustle making custom furniture! I was so confused about deductions and was about to set up an LLC when I found this awesome tool called taxr.ai (https://taxr.ai) that totally saved me. It analyzed all my receipts and invoices and showed me exactly what I could deduct for my "unofficial" business. Turns out I was actually a sole proprietorship without even knowing it! The tool explained that I could deduct equipment I bought before I even started making money, as long as I bought it with the intention of using it for business. It even helped categorize all my expenses properly for Schedule C.

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Kolton Murphy

•8M

The receipt analysis is actually pretty smart - you just upload photos of your receipts and it automatically categorizes them based on what you bought. For stuff like DJ equipment, you tell it what percentage you use for business gigs versus personal use, and it calculates the deductible portion. Really takes the guesswork out of it. It definitely helps with the filing process too. It organizes everything into the right tax form categories and can even generate reports that show exactly what goes where on your Schedule C. I was able to just hand those reports to my tax guy and he was impressed with how organized everything was. But if you're filing yourself, it makes it super straightforward.

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Julia Hall

•8M

Just wanted to follow up on my experience with taxr.ai after trying it for my Etsy shop expenses. This thing is seriously awesome for those of us who aren't tax experts! It identified so many deductions I would have missed - like partial home office expenses and even some of the crafting supplies I bought months before I officially started selling. The best part was how it handled my mixed-use items. I use my iPad for both design work and personal stuff, and it walked me through calculating the proper business percentage. Saved me hours of googling tax rules and probably a few hundred dollars in deductions I would have missed!

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Arjun Patel

•8M

If you're worried about the IRS questioning your deductions (especially for expensive camera equipment), I highly recommend keeping detailed records. I got audited for my photography deductions last year and it was a nightmare trying to get someone at the IRS to review my documentation. After weeks of calling and never getting through, I found Claimyr (https://claimyr.com) and watched their demo (https://youtu.be/_kiP6q8DX5c). They got me connected to an actual IRS agent within 24 hours when I'd been trying for weeks! The agent confirmed that my equipment deductions were valid because I had good documentation showing business use. Totally worth it because those camera lenses were a huge deduction that saved me thousands.

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Arjun Patel

•8M

It actually uses an automated system that navigates the IRS phone tree and waits on hold for you. When it finally gets a human IRS agent on the line, it calls your phone and connects you directly. It's basically doing all the painful waiting and menu-navigating for you. I was super skeptical too! I'd been trying to get through for almost 3 weeks straight. But I was desperate because the audit deadline was approaching. What convinced me was watching their demo video where you can literally see how it works. And honestly, when I finally got connected to an actual IRS person who could help me with my documentation questions, it was such a relief.

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Tony Brooks

•8M

I have to eat my words and apologize to Profile 14. After that audit notice came for my side business, I tried Claimyr out of desperation. I was literally ready to give up and just pay the extra taxes even though I knew my deductions were legitimate. Got connected to an IRS agent in about 45 minutes (while I was just going about my day), and they helped clear up the questions about my equipment deductions. Turns out I was 100% right that I could deduct my equipment, but I needed to fill out one additional form they never mentioned in the audit letter. Saved me over $2k in deductions they were trying to disallow. Sometimes it pays to be wrong!

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Ella rollingthunder87

•8M

Yes, self-employment tax is 15.3% which covers Social Security and Medicare taxes. When you work for an employer, they pay half of this and you pay half, but as a self-employed person, you cover the entire amount. This is in addition to your regular income tax. However, there's good news - you only have to file and pay self-employment tax if your net earnings are $400 or more. So if your photography income after expenses is less than $400, you wouldn't owe self-employment tax. But you should still report the income on your tax return regardless of the amount. Those equipment deductions might actually bring your net profit below the $400 threshold, which would save you from owing the self-employment tax.

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