Post by K W HartPost by Bill GrahamPost by Frank essPost by tony cooperPost by ^Tems^On the weekend I saw a guy win an amateur photo comp. He is
employed full time by a photographer as a second shooter.
Got me wondering what exactly is an amateur photographer? I would
have thought it was someone that made no or little money from
their hobby.
I would say that an amateur is one who does not sell his work. If
this guy is paid a salary by the photographer, then he's technically
an amateur. Ethically, though, I think he's wrong to enter contests
as an amateur.
The easy way is to go with the IRS: if you can deduct your photography
expenditures, you must be a pro.
I've paid taxes on money received from sales of a few photos; not nearly
enough to justify any kind of deductions, though.
Philosophically, I'm an amateur, because it's all for the love of the
"sport".
--
Frank ess
Yes. - As an amateur musician, this question has occasionally come up in
our discussions, too. I have occasionally been paid for gigs, but there
is a big difference between a few bucks now and then, and actually making
one's living from the art. If the IRS ever asked me to pay income taxes
on the few dollars I got from some gig, I would be overjoyed. I would
immediately file an amended return listing the cost of all my horns,
suits, sheet music, and transportation to and from all my gigs all year.
The amount of, "income" I would have to pay taxes on would be something
like minus $5,000. There is no question but they would say that what I do
is just a hobby, and anything I get from it is all mine to keep, because
it doesn't even begin to offset my costs.
(Disclaimer: I am not a tax accountant, nor do I play one on TV)
If you made a profit in three out of five years, you could deduct the
losses you had in the other two years (or do I have that backwards?). So,
let's say in year one, you buy all your equipment, clothing (with must be
specific to the job- if you buy a tux with the words "Horn Man" across the
back, it's deductable). sheet music, etc., and because of these expenses
you have a 5K lose. If you made an effort to actually run a business-
separate checking account, keeping records- it's deductable. In year two-
since you made all these long term expenditures in year one, you show a
profit. You can carry back the profit (or carry forward the loses), and
again pay little or no taxes.
Technically, you can show a negative income, as long as you show a
positive income within a five year period.
Then there is the issue of gross profits versus net profits, not likely to
be applicable to a musician, but very applicable to me as a photographer
who prints his own work in a conventional darkroom. If I make $10K selling
portraits, and I spend $2K on film, paper, and chemicals, I've made a
gross profit of $8K. If I spend an additional $13K on business insurance,
phone, electricity, etc, I have a net loss of $5K, and no tax liability.
(Please re=read the disclaimer)
and at my age, enjoying myself it job #1. IOW, I am a born amateur....:^)