Tax question

[kimberley]

Can you deduct charity contributions to local crafts show etc.

I donated a handful of session with prints etc included....

How do you handle this as far as taxes go?

K

[CaptainTom]

I'm not a tax advisor and I don't even play one on TV.

If the donation was made to a registered charitable organization (they will be able to tell you) you can deduct it as a contribution. If not, and you are in business, you can write it off as advertising and marketing.

[Howard Barlow]

If it is product, you can only deduct your actual cash costs, not retail value. Such as if you donate a print, valued at $300 retail, for an auction. You can only deduct your actual invoice cost from the lab.

[Steelsun]

Yep, as service industries you can only donate actual costs.
I made that mistake years ago when I 'donated' dozens of hours of website design for a charity. I could only deduct about 25 cents, since that was the cost of the CD the files got delivered on.
At least it was good Karma.

[bondarnes]

According to my CPA "As a general rule you can only deduct your actual costs and then only if the session actually happens". If I give away three sessions and prints I will usually only have to honor one or two of them, I know of one local photographer who deducted the full retail value of every certificate he gave out. Fortunately for him, he was never audited.