How to deduct in 2 Schedule C's with two different forms of 1099 MISC income?

Hi, I am an Actor who receives W'2 income, a Model, receiving 1099 Misc. "Non employee Compensation" and a Photographer who received 1099 Misc income under "Rental" for renting photographs (some framed art pieces and others were digital images) to a major network TV production where the images were used "on camera"
I am doing a Schedule C for both the Performing Artist/Modeling" work and the “Photography/image Rental” income and am wondering how deductions may differ for the latter since this income is from the rental of something tangible or material, rather than a service -based business like “Performing Artist”.
First, do I need to pay for sales tax that I perhaps should have specified on the rental invoices and collected? If so, how do I do this on my return?
Second, can I make the same deductions I do on my "Performing Artist" Schedule C like: Advertising, vehicle expenses (standard mileage), and "other deductions" (cell-phone, meals and entertainment? What can I deduct in this “rental” type business? What about the cost of my $5000 Camera?

Also, during the 2007 year, the vehicle I used for both of these businesses broke down and became mechanically inoperable and "unfix able" (not worth the value) and I had to get a new one. How do I include these two vehicles represented in the same year on my return as well as the $700 I had to pay to rent a vehicle while my vehicle was in the shop, and until it was declared "dead" and therefore I had to get a new "used" one)?

Hi, I am an Actor who receives W'2 income, a Model, receiving 1099 Misc. "Non employee Compensation" and a Photographer who received 1099 Misc income under "Rental" for renting photographs (some framed art pieces and others were digital images) to a major network TV production where the images were used "on camera"
I am doing a Schedule C for both the Performing Artist/Modeling" work and the “Photography/image Rental” income and am wondering how deductions may differ for the latter since this income is from the rental of something tangible or material, rather than a service -based business like “Performing Artist”.

You have been busy....

It sounds like you are preparing 2 Schedule Cs,

For your photography, your 1099-misc showing rental is the income for this business.


First, do I need to pay for sales tax that I perhaps should have specified on the rental invoices and collected? If so, how do I do this on my return?

Sales taxes are generally controlled by the state and local government laws. It is not clear if sales taxes would apply to the rental of your art work/pictures.

This is an income tax return, and sales taxes are not collected from your business on this return.

When the sales tax is included in the gross income, and if you did pay sales tax on this business, the sales tax can be deducted as an expense on Schedule C, line 23.

Note some states do collect sales tax from taxpayers for purchasing items on the internet and not paying the sales tax.


Second, can I make the same deductions I do on my "Performing Artist" Schedule C like: Advertising, vehicle expenses (standard mileage), and "other deductions" (cell-phone, meals and entertainment? What can I deduct in this “rental” type business?

Similiar expenses that you incurr, can be deducted for each business. See the instructions for Schedule C, and IRS PUB 535, Business Expenses.


What about the cost of my $5000 Camera?

This is a piece of equipment that can be depreciated.
Probably over 5 years. Also you may be able to take a 179 deduction for all or part of the camera cost. You should refer to IRS Pub 946, How To Depreciate Property for more detailed information.


Also, during the 2007 year, the vehicle I used for both of these businesses broke down and became mechanically inoperable and "unfix able" (not worth the value) and I had to get a new one. How do I include these two vehicles represented in the same year on my return as well as the $700 I had to pay to rent a vehicle while my vehicle was in the shop, and until it was declared "dead" and therefore I had to get a new "used" one)?

You can use the business part of the rental for the appropriate business.
Keep records as to how you determined the cost for each business. Probably some of that rental cost is also personal use.

The 2 pubs above will help you determine how to handle your personal auto expneses. It may be easiest to claim the milage allowance, plus tolls and parking fees you actually incurred for your businesses.

It may also be possilbe to depreciate your car if your business use is more than 50%. Again see the IRS PUbs for more details.

With these questions for your 2007 tax return, it may be best to request An Extension To File using form 4868. Or go to a paid tax preparer.