A&P So my accountant just called me.....

Discussion in 'Lifestyle' started by Jcolman, Mar 23, 2009.

  1. Jcolman

    Jcolman OT Supporter

    Joined:
    Aug 19, 2002
    Messages:
    43,114
    Likes Received:
    82
    Location:
    east coast
    ....and told me that I'm getting over $9,000 back in taxes this year!

    All those equipment purchases over this past year have combined to give me a $18k "loss" on the business. :mamoru:
     
  2. Drunken Karnie Midget

    Drunken Karnie Midget In Yeo We Trust, All Others Pay Cash OT Supporter

    Joined:
    Jun 3, 2004
    Messages:
    39,145
    Likes Received:
    0
    Location:
    Dirty Canada
    :rofl::rofl::rofl: g'damn man
     
  3. MawcDrums

    MawcDrums Active Member

    Joined:
    Aug 17, 2004
    Messages:
    62,962
    Likes Received:
    0
    Location:
    Zebes
    holy cripes :rofl:
     
  4. Jcolman

    Jcolman OT Supporter

    Joined:
    Aug 19, 2002
    Messages:
    43,114
    Likes Received:
    82
    Location:
    east coast
    I wish I could take the money and buy a 1Ds mk III but that's just being greedy!

    I'll stick the money in the bank or use it to help pay off the house.
     
  5. Girth

    Girth ¯\_(ツ)_/¯ OT Supporter

    Joined:
    Jun 28, 2002
    Messages:
    71,406
    Likes Received:
    107
    Location:
    Houston
    That's awesome, I took a 15k loss and I'm getting a whopping 6k back. :bigthumb:
     
  6. Drunken Karnie Midget

    Drunken Karnie Midget In Yeo We Trust, All Others Pay Cash OT Supporter

    Joined:
    Jun 3, 2004
    Messages:
    39,145
    Likes Received:
    0
    Location:
    Dirty Canada
    ...perhaps you guys should quit buying gear. You work your asses off, do amazing work, get paid (and not on the cheap,) and still lose a substantial amount of money. I think your business model needs to be re-worked :hsugh:
     
  7. Girth

    Girth ¯\_(ツ)_/¯ OT Supporter

    Joined:
    Jun 28, 2002
    Messages:
    71,406
    Likes Received:
    107
    Location:
    Houston
    :rofl:

    I've actually stopped buying because I feel I have plenty right now to do what I need. I didn't take a loss because I was being dumb, I took a loss because I was building my equipment up. I also didn't book too many weddings last year. My day job is pretty demanding and the schedule is across the board. I'm in the process of switching jobs that will let me concentrate on my photography a lot more. :)
     
  8. Jcolman

    Jcolman OT Supporter

    Joined:
    Aug 19, 2002
    Messages:
    43,114
    Likes Received:
    82
    Location:
    east coast
    Girth and I are in similar positions. My loss was based on starting my business and only three paying gigs in 2008. I invested over $20k in gear and had less than $2k in income. This year I've got 10 or more weddings on the books already so my profit/loss statement will be quite a bit different on next years return. The year after that I hope to show a nice little profit. That's when Uncle Sam will be getting his 40% of my money.
     
  9. Drunken Karnie Midget

    Drunken Karnie Midget In Yeo We Trust, All Others Pay Cash OT Supporter

    Joined:
    Jun 3, 2004
    Messages:
    39,145
    Likes Received:
    0
    Location:
    Dirty Canada
    i know. Just a little friendly jibbing. Didn't you say something about saving up for... what was it? oh yeah, now i remember.. Something Expensive :mamoru:
     
  10. the Rosswog

    the Rosswog OT Supporter

    Joined:
    May 14, 2002
    Messages:
    5,199
    Likes Received:
    0
    Location:
    Pittsburgh
    i was under the impression that any substantial equipment purchases can't be "written off" and contribute to income losses. You're supposed to be depreciating those assets over their normal lifespan.
     
  11. Jcolman

    Jcolman OT Supporter

    Joined:
    Aug 19, 2002
    Messages:
    43,114
    Likes Received:
    82
    Location:
    east coast
    I go by what my accountant tells me. Some equipment, like cameras and lenses I think are depreciated but everything else is an expense.

    I haven't looked at the forms yet so I don't know how he's figured everything.
     
  12. ///Mik3

    ///Mik3 New Member

    Joined:
    Feb 21, 2008
    Messages:
    911
    Likes Received:
    0
    Location:
    All Over California
    can you buy me a 5D mkII?
     
  13. HighTachPres

    HighTachPres New Member

    Joined:
    Jan 23, 2004
    Messages:
    11,712
    Likes Received:
    0
    Location:
    Greenville, SC
    shit i need my own business now!
     
  14. Jcolman

    Jcolman OT Supporter

    Joined:
    Aug 19, 2002
    Messages:
    43,114
    Likes Received:
    82
    Location:
    east coast
    1. Use what you have.

    2. Be very good at what you do (and you are)

    3. Market your mad skillz yo.

    4. ????

    5. Profit.

    6. Buy 5D mkII
     
  15. Girth

    Girth ¯\_(ツ)_/¯ OT Supporter

    Joined:
    Jun 28, 2002
    Messages:
    71,406
    Likes Received:
    107
    Location:
    Houston
    What Jcolman said!
     
  16. ///Mik3

    ///Mik3 New Member

    Joined:
    Feb 21, 2008
    Messages:
    911
    Likes Received:
    0
    Location:
    All Over California
  17. someonenew

    someonenew He's Dangerous

    Joined:
    Aug 27, 2002
    Messages:
    104,681
    Likes Received:
    0
    Location:
    Houston, Texas
    :bowrofl:

    sucks to be losing money in a business tho:o
     
  18. aCab

    aCab New Member

    Joined:
    Jun 1, 2007
    Messages:
    18,292
    Likes Received:
    0
    Location:
    Chicaaago
    Now you can afford to keep the supercar!
     
  19. Jcolman

    Jcolman OT Supporter

    Joined:
    Aug 19, 2002
    Messages:
    43,114
    Likes Received:
    82
    Location:
    east coast
    Ain't gonna happen. I'm not that uber rich.
     
  20. Jcolman

    Jcolman OT Supporter

    Joined:
    Aug 19, 2002
    Messages:
    43,114
    Likes Received:
    82
    Location:
    east coast
    I never intended to make a profit my first year.
     
  21. someonenew

    someonenew He's Dangerous

    Joined:
    Aug 27, 2002
    Messages:
    104,681
    Likes Received:
    0
    Location:
    Houston, Texas
    understandable...but that doesn't mean that anyone enjoys pissing money away.

    I understand it's not really "pissing it away" as it's an investment on future profits, but I think you get the idea.
     
  22. aCab

    aCab New Member

    Joined:
    Jun 1, 2007
    Messages:
    18,292
    Likes Received:
    0
    Location:
    Chicaaago
    oh, ok.
     
  23. Jcolman

    Jcolman OT Supporter

    Joined:
    Aug 19, 2002
    Messages:
    43,114
    Likes Received:
    82
    Location:
    east coast
    I don't view it as "pissing it away". I knew going in that I was going to spend a lot of money on gear to get up and running. I went a *little* overboard on the gear but at least I'm comfortable now with my equipment list. My investment will help me to earn a nice profit in just my second year in business, assuming that business continues to grow as it has.
     
  24. johan

    johan Active Member

    Joined:
    Nov 4, 2003
    Messages:
    5,123
    Likes Received:
    0
    Location:
    Sahasrara; magnetic violet infinite
    It's expected that you don't show a large profit, and typically a loss in your first few years.

    There's a significant tax benefit to not doing so, and I'm personally raping those benefits to the fullest extent for 3 years.

    It has nothing to do with how "successful" the business is, and everything to do with structuring the books to claw back tax benefits.
     
  25. johan

    johan Active Member

    Joined:
    Nov 4, 2003
    Messages:
    5,123
    Likes Received:
    0
    Location:
    Sahasrara; magnetic violet infinite
    Nah...it's not pissing anything away. Your growth model is basically what everyone does.

    Plus or minus a few 1000's in expenditure, but that's just minor details anyways, and in no way alters the basic validity of how you're growing your business.

    Those who don't get it...don't get it. :uh: They haven't gone down the entrepreneur road themselves.
     

Share This Page