Tax Matters: Are you a Professional Photographer?

First published on: Wednesday, 12 September 2007

Here’s the question: You sold one photo this year … is this taxable in the eyes of the IRS?

David D. Busch of Digital Photography for Dummies has the answer — I quote a portion of his response:

In general, the IRS uses the following 9-Point Test to determine if your activity is a business or a hobby:

  1. The manner in which the activity is conducted

  2. The expertise of the taxpayer

  3. The time expended on the activity

  4. The expectation of profit

  5. The success in other similar or dissimilar activities

  6. The history of income and losses

  7. The amount of “occasional” profits

  8. The financial status of the taxpayer

  9. How personal pleasure or recreation contribute to the business

Read his reply for further explanation on how the IRS distinguishes your income from photography activities as a hobby or a business.

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