Tax deductions are part of the lifeblood of any business seeking to maximise net income in the financial year. Your photography business is privy to a number of tax write-offs that can free up your cash flow and make it less nerve-racking to buy essential equipment and supplies. As with any tax deductions, maintain substantial proof and keep all receipts so the filing process is as simple as possible come April 15.
You can deduct your insurance premiums from your taxes at the end of the financial year. Your personal health insurance policy, as well as any insurance that you buy for your photography equipment, is a write-off that should be submitted as an itemised deduction. As a limitation, you cannot make an insurance deduction that is higher than the net income of your photography business.
You can deduct any equipment you purchase for your photography business, including cameras, lenses, lighting, tripods, batteries, film, storage drives, computers, supplies and cables. For example, if you buy a camera for £1,300, you may deduct the price of that camera on your taxes for the financial year. Make sure that you keep the receipts for all purchases.
Training and Education
Any training or education classes you attend for your photography business can be written off at the end of the financial year. You cannot, for example, go back to school to obtain a philosophy degree and claim the tuition you spent as a tax write-off. However, a photography class is fully deductible.
Deduct any travel expenses incurred for your photography business. Hotels, rental cars, flights, gasoline and meals are all eligible deductions, provided that you have proof of the expenditures. Travel by air, car, boat, or rail is fully deductible on your taxes, though meals are only 50 per cent deductible. Save your receipts every time you fill up while working.