You are right - Nevada has a state & local SALES tax, but no state INCOME tax.
I did not realize that the gallery might pay me the sales tax, which I would then report - I thought that the gallery would collect and report the entire amount. Looks like there is a lot more to learn than just taking good photographs.
Thanks for your help.
--- In artshow_photo@yahoogroups.com, "Maria Arango Diener" <1000woodcuts@...> wrote:
>
> Ummm.Nevada does NOT have state INCOME tax.
>
> I'm in Nevada and have been in business here for 18 years.
>
>
>
> If the gallery pays you the SALES tax they collected for you, then you have
> to report it to the Nevada Department of Taxation and pay the sales tax. You
> do not need a tax ID, you can report under your SSN. However, the Department
> of Taxation will catch on if you continually report sales tax without a
> business license and a tax ID number. Those, incidentally, are two separate
> things.
>
> You may also need to study up on County and/or City business license
> requirements for your area; again, state-county/city are two separate things
> when it comes to licensing. Start with this website for the state sales tax:
> <http://tax.state.nv.us/> http://tax.state.nv.us/
>
>
>
> Your second question is only correct if you file business as cash-basis.
> Travel is a huge red flag for the IRS and it sounds like you have quite a
> few questions. I don't mean to sound negative in any way and I have done my
> own taxes without an iota of help for every year of business but asking a
> forum is probably not the best way to get information on something as
> potentially important as taxes (she says as she keeps on typing tax
> advice.). Sigh.
>
>
>
> Anyhow, my advice? Get Turbo Tax or similar program and it will walk you
> through every step of the way. No mistakes, plenty of excruciating help on
> every little line item and links direct to the BEST source of first-hand
> information, the IRS website. <http://www.irs.gov> www.irs.gov
>
> Incidentally, I withstood an audit on my third year in business, lucky me.
> Turbo Tax and Quicken were life savers because every little dollar in or
> dollar out was duly noted and accounted for. The IRS auditor just loved my
> files, seriously.
>
>
>
> Maria
>
>
>
> [=o=]<>[=o=]<>[=o=]<>[=o=]
>
> www.1000woodcuts.com
>
> www.artfestivalguide.info
>
> [=o=]<>[=o=]<>[=o=]<>[=o=]
>
>
>
> From: artshow_photo@yahoogroups.com [mailto:artshow_photo@yahoogroups.com]
> On Behalf Of henderson
> Sent: Tuesday, December 14, 2010 12:14 PM
> To: artshow_photo@yahoogroups.com
> Subject: [artshow_photo] Re: Newbie question re Federal Income Tax on
> startup photography business
>
>
>
>
>
> thanks for the great info. i live in NV, which does have an income tax.
> However, if I sell thru a gallery, they charge and report the tax to the
> state. Do I still need to have a tax ID?
>
> I have spent quite a bit on frames, mats, and prints. If I understand you
> correctly, these are only deductible when I sell - so if I buy 100 frames
> and 100 mats, but sell 10 frames photos, I can only deduct the cost of 10
> frames and 10 mats (pretty much insuring that I will have a profit).
> Correct?
>
> Another question - I frequently do "photo tours" to a location. These tours
> are educational, as well as providing an opportunity to acquire images.
> Usually, I have to fly, not drive. Can I deduct the airfare? Can I deduct
> the cost of the photo tour?
>
>
>
>
>
>
> [Non-text portions of this message have been removed]
>
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