hobby..but no michigan wants their tax money

[tikaldogos]

i moved up her to michigan form texas. (dont hate) i still wanted to keep my photography as a hobby but with mich law they want every penny they can get. not to mention the way the photography places up here are killing people with the prices, long delivery times on photos, photographers not taking pics costomers want, 8 hours in studio for senior photos (complaints i was told about photos they had done, and no i didnt take their photos just general conversation) im sure someone would turn me in for under cutting them out of spite.

is there a list some where that lists all the things i should keep records to take off in taxes at the end of the year?? things a tax preparer would need.

if im paying in then im taking advantage of a loss if it comes to that

[suerenee]

Even in Texas you should have been paying sales tax if you make any $.

Keep track of all of your expenses, mileage, and income. You can only claim a loss for a few years and then you can't claim your business on your taxes anymore. Definitely consult a CPA to find out for sure.

Small Business Expenses and Tax Deductions | SBA.gov The SBA is a great resource. Good Luck.

[tikaldogos]

i thought it was like other places and untill you pass an amount you dont have to claim it. 99% of my shooting was free..i made 200 in one year at the most

[TheFantasticG]

From what I read, it was if you make more than $600 in a year (in Texas), you have to pay taxes on it and everything thereafter.

[XtremePhoto]

If you make $1 in Texas the State wants their Sales tax.

-G-

[TheFantasticG]

Well, I suppose I was talking about something else, not sales tax...

Texas Sales Tax Rules and for For Michigan

Texas Sales Tax FAQ and Michigan Sales tax FAQ

[XtremePhoto]

Originally Posted by TheFantasticG

From what I read, it was if you make more than $600 in a year (in Texas), you have to pay taxes on it and everything thereafter.

Actually, the IRS approaches it the same for any state...if you operate "with the intent to make a profit" you have to report and pay income tax on it. That means, if you advertise, market and price your service(s) then you are operating with the intent to make a profit. If you are just taking a payment or two here and there from a friends for doing some photography, that isn't operating with the intent to make a profit.

-G-

[Howard Barlow]

If you open for business, even if you never make a sale, in Texas the law requires you to have a sales tax permit and file a return. Dollar amount, or none, is irrelevant.

[iCe]

Maybe it's just me but the minute you get paid for something it's not a hobby.

[Tom]

Originally Posted by iCe

Maybe it's just me but the minute you get paid for something it's not a hobby.

I like to play poker. Sometimes I walk away with a few extra bucks, sometimes I don't. But poker is a hobby. I'm in no way a professional poker player.

[iCe]

So photography, which is basically a service, is the same thing as a game of chance? I reckon not. If you charge for a service then it's a business to the US and state government.


PS- Did you declare your winnings

[Tom]

Originally Posted by iCe

So photography, which is basically a service, is the same thing as a game of chance? I reckon not. If you charge for a service then it's a business to the US and state government.


PS- Did you declare your winnings

You said that in your mind, the minute you get paid something, it is no longer a hobby. I've been paid out playing sports and cards. Both are hobbies. In fact, lost of hobbies draw income. Ask the IRS.

I've been audited. I am extremely diligent and accurate with my filings. I've declared all I am required to.

[iCe]

True, I should have been more clear.

I was kidding in the PS.