Taxes - Did I Do It Right?

[MarkBarbieri]

I'm strictly an amateur photographer. I let people freely download my pictures. I also charge a small premium when people order prints on Smugmug to help defray the costs of the Smugmug account.

In 2009, I got paid a couple hundred bucks for the Smugmug prints. It's less than $600, so they didn't send me a 1099. My understanding is that, 1099 or not, it's still income.

I know that I can deduct business expenses and that can include camera gear. I'm pretty certain that I spent more than a couple hundred bucks on camera gear last year. The thing is, I spent all of that money in furtherance of my hobby and not a penny was spent for non-hobby business uses.

Am I correct that the completely honest, totally by the rules way to handle this is to report the money I was paid by Smugmug as business income and to not report any offsetting expenses because I really didn't spend a penny on earning that income that I would have spent for hobby purposes?

BTW, my total return as printed by TurboTax (not including forms supplied by my employer, bank, brokerage, etc) came in at 61 pages. That includes all of my worksheets. Just the part I'm supposed to file is 17 pages. That's insane.

 

[Steve's Girl]

Disclaimer - I am not a CPA!

Is there the potential that you will use any of that equipment for "pay" photography jobs? You can write off a percentage based on how much you anticipate using that gear for "pay" jobs. I think I would write off an amount equal to what you earned. The purpose for your purchases this year was purely for your own hobby, but if that gear will be used for paying jobs in the future, I'd write off at least a percentage.

A couple years ago I did the photos for a brochure I use for my business. My accountant wrote off a percentage of a new lens I purchased that year since I did use the lens for those photos.

 

[bob100]

I'm strictly an amateur photographer. I let people freely download my pictures. I also charge a small premium when people order prints on Smugmug to help defray the costs of the Smugmug account.

In 2009, I got paid a couple hundred bucks for the Smugmug prints. It's less than $600, so they didn't send me a 1099. My understanding is that, 1099 or not, it's still income.

I know that I can deduct business expenses and that can include camera gear. I'm pretty certain that I spent more than a couple hundred bucks on camera gear last year. The thing is, I spent all of that money in furtherance of my hobby and not a penny was spent for non-hobby business uses.

Am I correct that the completely honest, totally by the rules way to handle this is to report the money I was paid by Smugmug as business income and to not report any offsetting expenses because I really didn't spend a penny on earning that income that I would have spent for hobby purposes?

BTW, my total return as printed by TurboTax (not including forms supplied by my employer, bank, brokerage, etc) came in at 61 pages. That includes all of my worksheets. Just the part I'm supposed to file is 17 pages. That's insane.

you're cheating yourself if you include the income and not include the expenses but hey - you're a rich guy! Even though it's a "hobby" you are allowed to deduct associated expenses with miscellaneous income such as smugmug fees, internet fees, camera equipment, traveling mileage to get to the picture's location, etc. The problem is you have to file a schedule C and that means more forms and it gets complicated. Or just report it on line 21 other income. Most people that have minor income under $600 without a 1099 just don't report it - but hey - you're an honest guy!