I'm in a bit of a bind...

...I have call already into my tax lady about what I need to do, but would also like some other opinions.

Basically, here's what happened.

I made too much.

I made more than I spent. Now, do I spend the remainder on gear? or take the hit on taxes and lose the money entirely? Do I spend the entire amount I went over? (Ex; I made $10 and only spent $3. The remainder is $7 I owe for taxes.)

My first thought it to buy gear. Hell, I need it and it provides yet another tax write off (depreciation) at the end of the next 7 years.

Also, anyone know if I can write off a gift someone gave to me? (probably not, but worth asking)

Thanks guys

~Eric

[prrs4me]

Send the excess to me. Then you won't have to worry about paying taxes on it. I've never had the problem you're having but I guess it's a good thing.

[Sterling]

Ex; I made $10 and only spent $3. The remainder is $7 I owe for taxes.

I'd move to somewhere that doesn't charge 100% of your profit as tax.

[PnwGuy]

I'd wait and see what your tax lady says. During an audit I don't think saying "well, on the photography forums I hang out on they said...." would hold as much water as saying "well, my tax lady said...". :-)

As for deductions, isn't it too late to buy gear and deduct it for last year? The only thing I can think of would be to put some money into a 401k which would lower your gross earnings.

[OsmosisStudios]

Now accepting donations for an 85mm f/1.4 lens, via the Poor University Student fund.

[HVACman]

Originally Posted by maxharvard

...I have call already into my tax lady about what I need to do, but would also like some other opinions.

Basically, here's what happened.

I made too much.

I made more than I spent. Now, do I spend the remainder on gear? or take the hit on taxes and lose the money entirely? Do I spend the entire amount I went over? (Ex; I made $10 and only spent $3. The remainder is $7 I owe for taxes.)

My first thought it to buy gear. Hell, I need it and it provides yet another tax write off (depreciation) at the end of the next 7 years.

Also, anyone know if I can write off a gift someone gave to me? (probably not, but worth asking)

Thanks guys

~Eric

Your example does not make sense to me at all. There are many factors involved in determining how much you owe.

As far a s gifts go.... anybody can gift anyone up to 13K per year tax free. It's too late to do this for the 2010 tax year.