I have just started selling my photographs, but plan to do more. I sold a few things at an arts & crafts fair, and have some photos on consignment in a gallery. I would like to focus on galleries/consignment, so I do not have to deal with tents, possible damage, sales tax, etc. At the moment, I do not have a Sales Tax ID or a Business License. I have had lots of expenses for printing, matting, framing, etc., as well as travel costs to acquire images.
My question concerns Federal Income Tax. What can I legitimately deduct on my taxes this year and in future years? What do I need to do to insure that my deduction will be legitimate if audited?
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