crazy tax question

[Breezy]

How do I know if mileage is "buiness" or Travel?
The reason I ask is cause the tax lady just told me that my mileage would be divided up by travel and business I never did that before.
I know she said that when I went to Houston and SA for workshops that would be considered travel mileage.
But are shoots considered travel?
I know that PO trips delivering photos are business but how do I determine what is travel and what isn't?
Also for OPLOVE is that charitable or business?
Sorry for all of the questions

[bondarnes]

Why don't you ask your "tax lady"? Mileage to sessions would be business.

[Breezy]

Thanks Don
I really didn't want to call her again as I have called her twice today.
I guess I will thanks

[Gateruner]

That is what you are paying her for Breezy. Get your moneys worth and accurate advice to boot.

[STP Images]

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[mkweaver]

If you travel to Texas School (for instance), that mileage may be rated as "education expense" along with the meals, motel, and tuition.
Again, I'm no CPA, so ask your tax lady! How you count it can make a big difference in the bottom line!

[CaptainTom]

It's not as easy as it sounds.
you get mileage when you travel from your "place of business". If you have an established studio, that would be your place of business. If you don't, your place of business "could" be considered the starbucks or customers house or botanical garden where you meet the client.
A long time ago, a CPA who I trusted very much said " document it, claim it, and dispute it" if necessary.
It seems pretty cool to have i.e. $35,000 income and be able to deduct $32,000 in business expenses. But, think about it. What sort of business can you sustain if you make only $3,000 or if you are "losing money" ?

[Breezy]

Thanks for your answer but I did know the difference in these.
And I worked in a Tax office a few years back and I never seperated business from "travel". If it was all business related.
In the end I didn't break it down because why does it really matter as long as it is legitimate business mileage?
That said it was all taken care of this morning. :D

Originally Posted by Paraquat

It's really a simple concept, there shouldn't be confusion.

If you drive somewhere that is photgraphy business related (a shoot, a meeting, picking up a new set of lights from a vendor, etc.) it is expensible mileage.

If you drive somewhere for your personal needs (the grocery store, an aerobics session, the coffee shop), it is NOT expensible.

Rates of remibursement maximums are set by the IRS. The current maximum rate you can be reimbursed for mileage is 50.5 cents per mile - it just went up to that.

I am not a CPA, but I did stay at a Holiday Inn Express last night . . .

Seek the advice of your CPA.

[Breezy]

Originally Posted by mkweaver

If you travel to Texas School (for instance), that mileage may be rated as "education expense" along with the meals, motel, and tuition.
Again, I'm no CPA, so ask your tax lady! How you count it can make a big difference in the bottom line!

That is what I was thinking but I bought the warranty as I feel I may need it in the end
But I had enough losses that it didn't really matter as I didn't have to claim everything.

[Breezy]

I completely agree Tom, if I can't make anything then I have issues. :D
That said I would have been alot better off had I not gotten the Sony but when you have clients waiting you do what you gotta do.
And I depreciated a lot more than I probably should have but oh well atleast it will be there for a few more years since I have plenty of stuff to get my by with lol.

thanks again for the help.

Originally Posted by CaptainTom

It's not as easy as it sounds.
you get mileage when you travel from your "place of business". If you have an established studio, that would be your place of business. If you don't, your place of business "could" be considered the starbucks or customers house or botanical garden where you meet the client.
A long time ago, a CPA who I trusted very much said " document it, claim it, and dispute it" if necessary.
It seems pretty cool to have i.e. $35,000 income and be able to deduct $32,000 in business expenses. But, think about it. What sort of business can you sustain if you make only $3,000 or if you are "losing money" ?

[Gateruner]

For those of you that are keeping an eye on this thread and dont really understand the tax issues of a business need to understand that a business loss does not always mean you are losing money.

[Breezy]

Originally Posted by Gateruner

For those of you that are keeping an eye on this thread and dont really understand the tax issues of a business need to understand that a business loss does not always mean you are losing money.

I guess I should have reworded it.
But oh well I am still too exhausted to explain lol