I’m trying to jump start a fine art photography business & have, between last year and this, spent quite a bit on supplies, framing, and entering competitions for exposure and credibility, etc. Last year I didn’t have any income from my work yet, although I had start up expenses, so didn’t write any of it off. This year, so far, I won a prize in a photo competition, but only have $24 in sales. How does that work for my taxes? Are prizes from related work counted as earned income or something else? And can I write off the cost of supplies leading up to the prize (the winning acrylic print was paid for in 2021, but the winner wasn’t announced and prize money paid until 2022).
Also, I’m looking at using some of the prize money on a new laptop (mine is 7 years old and Apple now considers it obsolete) and photoshop software, and a DSLR camera for the business. Do I get to write that off?
Any help is appreciated! Thank you
