starting a small biz??

[phatkid77]

can someone here help me...... i want to do a couple things

i'd like to register a business, so could upgrade printers, maybe D200 a laptop etc etc..... and be able to claim some stuff..HOWEVER..

1. i am happy helping out my friends and getting paid on the side, whilst building a portfolio......so can i resgister and claim things with no to little revenue?? or do i have show something (minimum)?

2. what do i need, and how much would it cost to create a website that can host pictures in individual folders for potential clients to view and place orders??


thanks

[cdifoto]

can someone here help me...... i want to do a couple things

i'd like to register a business, so could upgrade printers, maybe D200 a laptop etc etc..... and be able to claim some stuff..HOWEVER..

1. i am happy helping out my friends and getting paid on the side, whilst building a portfolio......so can i resgister and claim things with no to little revenue?? or do i have show something (minimum)?

2. what do i need, and how much would it cost to create a website that can host pictures in individual folders for potential clients to view and place orders??


thanks

You'd have to take that up with your local tax and business authorities. It varies from county to county and state to state within the US alone, let alone Canada and the various Territories/Provinces.

Chances are at the very minimum, you have to show at least some income derived from the items you buy. In my state, you can't just buy stuff and write it all off. You have to prove that it's related to your business if it's not obvious. Lenses and cameras I don't have to prove...since it's obvious that a photography business needs those things. I couldn't buy a big screen TV and claim it as a business expense. I COULD however, buy a smaller one and a VCR and claim it as training materials....if I had employees.

[phatkid77]

i heard that u can only claim income tax from money you earned VIA business?? seems odd, i know u have to pay the GST on money earned.... i think the person got it backwords....

i get the point that i cnat just buy all new camera equip, nad get moeny back if i have no revenue....but i would think the first yr, could be a total start up cost with little to no income??

phats

[JLV]

Let me start by saying that I am a retired CPA and a retired Professor of taxes. In the U.S. the IRS requires that you are really in business in order to take losses. Hobby losses are not deductible. One rule of thumb to show that it is not a hobby but a business is to show a profit in 3 of the last 5 years. Having a web site where you are actively trying to sell your stock photos and soliciting commissions might help show you are trying to start a business. The more revenue generated the better. As my information may be old, you should check with your tax advisor for any updates.

The cost of a web site can be very inexpensive if you write your own page. Freeservers.com have free and moderately priced services.

Wish you well.

[cwphoto]

Let me start by saying that I am a retired CPA and a retired Professor of taxes. In the U.S. the IRS requires that you are really in business in order to take losses. Hobby losses are not deductible. One rule of thumb to show that it is not a hobby but a business is to show a profit in 3 of the last 5 years. Having a web site where you are actively trying to sell your stock photos and soliciting commissions might help show you are trying to start a business. The more revenue generated the better. As my information may be old, you should check with your tax advisor for any updates.

The cost of a web site can be very inexpensive if you write your own page. Freeservers.com have free and moderately priced services.

Wish you well.

We have no such profit clauses here, but in order to discourage the hobbyists, one must earn at least AUD20,000 from the business before you will be allowed to off-set expenditure against other non-related income.