Best Tax Write-offs for a Photography Business

Follow our guide to get the most deductions and keep everything organized

Operating a photography business involves creativity, client interaction and a constant flow of costs. Knowing the common tax deductions for photography business owners, can help lower taxable income and put more money into your pocket to buy gear, market, or learn. This guide delves into the nitty-gritty on what you can and can’t deduct, best record-keeping practices and red flags to avoid, so you’re not giving away more of what you bring in trying to be compliant.

Equipment and gear

Cameras, lenses, lighting pieces, tripods etc. can add up as a photographer. Investments in physical equipment are typically deductible, through either taking the full deduction for purchased property (pursuant to certain rules) or writing off the cost over time. Maintain detailed receipts including the date, price, and description of property. In the case of these kinds of partially personal items, you basically have to assign a business-use percentage and only write off that amount.

Repairs, maintenance, and upgrades

Normal maintenance and repairs to machinery are a deductible business expense. Upgrades like new memory cards, batteries, cleaning services or a professional tune-up can usually be deducted the year you paid for them. If you put in a substantial upgrade that adds additional decades of useful life to a piece of equipment, you might be required to depreciate the cost instead of deduct it up front.

Studio expenses and rent

If you rent studio space, then both your rental payments and associated utilities generally are deductible business expenses. Photographers who shoot on location can also claim the cost of renting temporary spaces or props for particular projects. If you work out of a home office that is regularly and exclusively used for business purposes, you may apply to expenses such as a proportional amount of your rent or mortgage interest, insurance, utilities. Be sure the space otherwise qualifies for a business-use deduction, and keep a floor plan and usage log.

Vehicle and travel costs

Traveling to clients, off-site shoots and meetings may produce deductible costs. You can either subtract actual vehicle expenses (like gas, maintenance, insurance and depreciation) based on the percentage of miles driven for business purposes or use a standard mileage rate, so long as you don’t use that method. Maintain a contemporaneous mileage log with dates, destination of travel (name/title) business purpose and number of miles. For business trips, there is generally a deduction for air fare, the cost of hotel rooms (with limitations), meal expenses and any incidental travel costs that are properly documented for overnight stays.

Software, subscriptions, and tech

Photo editing software, cloud storage subscriptions, booking systems and other online services used to run your business are typically deductible. If software is purchased, then depending on the cost and follow-on rules you can write it off as a deduction in that year of purchase or amortize investment. Keep receipts and be sure to note the business purpose for each subscription in order to demonstrate your deduction.

Marketing and client acquisition

Everyone knows marketing, web site, printing and promotion costs are a part of business. That means, for example, that the costs of operating an online portfolio, paid advertising and social media promotion, as well as printed marketing materials that you use to get clients are usually deductible. Monitor ad spend and business context in such a way that these costs can be easily related to new client acquisition and generating revenue.

Education and professional development

Workshops, classes, conferences and books that enhance your photography or improve the way you operate your business are typically deductible. Transportation and hotel expenses for business meetings can also be written off. Save all your agendas, receipts and proof of how the training relates to your photography business.

Insurance, licenses, and professional fees

Business insurance, professional license fees and dues to business clubs are legitimate business expenses. Fees for your legal and accounting needs in the operation of your photography business, such as paying a lawyer to review contracts or an accountant to prepare tax returns, are also deductible.

Supplies and props

If you purchase consumables such as memory cards, batteries, cleaning supplies and posing props or backdrops in DSLR photography business year they are deductible. Save receipts and record and allocate business use for items that also have intermittent personal usage.

Client meals and entertainment

Dining experiences with a client or someone who might become one (during which you transact business) can be deductible, but at only 50 percent of the cost. Entertainment usually has tighter rules. Save receipts, note the business purpose and attendants of the meal, and record how the meeting furthered business development.

Depreciation and major purchases

Big-ticket items like studio build-outs, business-use vehicles and costly camera systems might have to be written off over multiple years. Depreciation, the reclaiming of most (or all) of investment in tangible property used in your business. There are rules that allow accelerated deductions for certain purchases in the year you place them into service, but they can have recapture in future years if you sell the asset. Record the dates when documents are purchased, the associated costs and the percentage of business use.

Recordkeeping best practices

• Save receipts, invoices and contracts: Always have digital and physical copies on hand. Scan all paper receipts into neatly organized folders.
• Keep separate accounts: Have a separate business bank account and credit card to keep personal and business transactions divided.
• Keep a contemporaneous mileage log: That way, no one will accuse you of pulling numbers out of the air.
• Document business purpose: For meals, travel and client gifts, jot the business reason and attendees on the receipt or in a trip log.
• Maintain backups: Keep copies of your records in the cloud and on an external hard drive.

Common red flags and how to avoid them.

Dipping into personal and business expenses, neglecting to hold on to supporting documents, big write-offs without provable business use and disparities in reporting can raise red flags. Document your business intent, log your travel correctly, and be consistent from year to year. If you’re unsure about a deduction, make sure to record why you believe it’s eligible and consult with a tax professional.

Putting it all together

The knowledge and application of the proper deductions can dramatically cut your taxes as a photography business owner. Begin by categorizing expenses: equipment, studio, travel, software, marketing, education and professional services. Keep detailed records, budget for multi-purpose items and time major purchases wisely to record a win-win. In complex situations (e.g., depreciation schedules, home office eligibility or deductions for travel), a tax professional can keep you in compliance with the relevant rules and identify legitimate tax-savings opportunities. Careful planning and diligent record keeping allow you to take every legitimate deduction so that you can spend more time doing what you do best: taking great pictures.