Photography Business

Forum|Forum|1 year ago
February 28, 2025
1 reply
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I started this nature photography business in 2021. I have a website with ecommerce. I deducted all of my camera gear for the company for the whole amount for the first year instead of spreading it out. I have only made a small amount of money and that was in the first year. I didn't make any money the second or third year. I have added new photographs every year to keep my content fresh, but I'm not getting any traction. I am using Facebook to try and push people to my website without much luck. I am thinking about closing my business because it is just costing me money now. I was wondering what my options are?

TurboTax Home & Biz Windows

RobertB4444

If you close your business then - unless you sell off your equipment or any of the other assets of the company - you simply stop reporting it. If you have not made any money in three years you probably should admit that this is just a hobby and not an income generating activity.

If you decide to close the business but keep doing the activity because you enjoy it then it is a hobby. Hobby income is different than business income because you can't deduct hobby expenses so you pay taxes on the full amount that you earn. But, on the upside, you do not pay self-employment taxes on any of the hobby income.

If you decide to wash your hands of the whole business and sell off all your equipment that you expensed during that first year then any money from selling off the equipment is business income for that year.

@nascar6fan1

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