----- Original Message ----- > Under such a set of conditions the cost of a digital camera spread over 3-5 > years is offset by tax allowances so the pro pays nothing for the gear in > the end. >
Rather too simplistic as pointed out by others. The depreciation rate for digital/computer equipment in Australia is 40% per annum, which means I fully depreciate the new body in 2.5 years. This reduces my taxable income over the 2.5 years by $15,000 - the cost expected here - and means I save about $3,750 in tax I would otherwise pay at current tax rates. I therefore have to find $11,250 in *additional* profit over the 2.5 years just to achieve a payback on the equipment. And that is only one of many considerations involved in this kind of capital expenditure, not the least of which is what is the profitable life expectancy of new digital equipment. Nothing is ever free and, guess what, professional photography is hard work to make a living from, just like most other careers. I'm not having a go at you, just sharing my perspective. Regards, Tim www.timmunro.com.au * **** ******* *********************************************************** * For list instructions, including unsubscribe, see: * http://www.a1.nl/phomepag/markerink/eos_list.htm ***********************************************************
