Are you an amateur gone pro?

[jtuason]

If so, I'd like to hear your story. I've been using Flickr and I've received at least five requests to use/license some of my photos. So far, I've requested donations to local public schools in lieu of a fee. I'm thinking, I don't want to make money from my pictures because I never ever want it to feel like "work." But I also don't want people to profit from my pictures without compensation (and certainly, always, credit). Hence my requirement for a donation to a third party.

[Edited to add: But I'm thinking about starting to sell my pics since my daughter is only four years away from college, and every little bit will help with her tuition.]

I'm curious too, how does selling a picture affect what you need to do regarding income tax? I know y'all are not tax advisors; just tell me your experiences, please.

Thanks!
Julie

[toverman]

Any income can affect income tax filings. There are threads in the business section that will help answer some of those questions.

Photography is a passion, and getting paid to do it only enhances the experience for me. That's the short answer!

[snydersnapshots]

Originally Posted by jtuason

If so, I'd like to hear your story. I've been using Flickr and I've received at least five requests to use/license some of my photos. So far, I've requested donations to local public schools in lieu of a fee. I'm thinking, I don't want to make money from my pictures because I never ever want it to feel like "work." But I also don't want people to profit from my pictures without compensation (and certainly, always, credit). Hence my requirement for a donation to a third party.

[Edited to add: But I'm thinking about starting to sell my pics since my daughter is only four years away from college, and every little bit will help with her tuition.]

I'm curious too, how does selling a picture affect what you need to do regarding income tax? I know y'all are not tax advisors; just tell me your experiences, please.

Thanks!
Julie

Julie,

There are far better sources for business advice on here than I, but I'll tell you my experience and let you take it from there.

My wife and I became the "unofficial" photographers for our son's baseball team. At the encouragement of the coach and other parents, we decided to turn it into a business and sell some of our photographs. Through word of mouth, we've gotten to the point where we're shooting and selling to other teams as well. I probably could have gotten away with selling the pictures and nobody would have known, but I figure it's easier to do things the right way in the long run. Here's what I have learned and done:

--As far as the state goes, I registered our business as a sole proprietorship and got a business license (this can be done online in a few minutes). That also gets you into the system to file a sales tax return for the pictures you sell. Since my volume is so low ($250 last year), I have to pay the sales tax once a year (it's an easy form and can be done online also). Regarding the business format, I chose a sole proprietorship because it's very simple and doesn't require any legal documents like a partnership (even if the partner is a spouse) or corporation would.

--On the federal level, I file the appropriate forms and schedules for showing the business income on my federal taxes (1040 Schedule C, I believe). There are a couple of ways you can go here. If you consider it income from a hobby--which is what I am doing--you can deduct expenses only up to the amount you make from your hobby (i.e. you cannot take a deduction for showing a loss). If you make more than you spend, then that is considered additional income.

--If you consider it a business, you can deduct things like office space, mileage, and depreciation on that new $5,000 Nikon D3. Those deductions, if they exceed your photography income, will also offset your tax burden from your "real" job. The kicker here is that you have to keep more accurate records and show an honest intent to turn a profit. Too many years of showing a significant loss and Mr. or Ms. IRS will be knocking at your door wanting to look at your records.

Having said all that, I'll close with the standard disclaimer: Three things you never want to accept from a pilot are investment advice, tax advice, and marriage advice (though at 17 happy years, the latter seems to be going OK...).

Good luck and have fun!

Ken

[jtuason]

Thank you Ken and Todd. I am interested in all points of view here.

Signed,
Naive Newbie :)