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?
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