Can Taxidermists Deduct Business Expenses?
Yes. Taxidermists who operate a taxidermy business can deduct ordinary and necessary business expenses from their taxable income. This includes supplies, equipment, tannery costs, software subscriptions, and in some cases, home studio space.
Software subscriptions like MountChief are fully deductible as business expenses. Taxidermy equipment including forms and tools are depreciable business assets.
This article covers the main categories of deductible expenses for taxidermists. For specific tax advice, consult a CPA or tax professional familiar with small business deductions.
TL;DR
- Taxidermists can deduct ordinary and necessary business expenses including supplies, equipment, and shop costs.
- The home office deduction applies if you use part of your home exclusively and regularly for taxidermy.
- Equipment like fleshing machines, forms, and tools can be deducted or depreciated depending on cost.
- Tannery fees paid by the taxidermist are a deductible cost of goods sold.
- Mileage to suppliers, competitions, and educational events may be deductible.
- Consult a tax professional familiar with small business deductions for your specific situation.
Deductible Operating Expenses
Supplies and Materials
Every supply you purchase to produce a mount is deductible. This includes:
- Taxidermy forms and mannikins
- Glass eyes
- Adhesives, glues, and epoxies
- Chemicals and tanning supplies
- Ear liners, lip tape, and detail materials
- Paint and finishing supplies
- Freezer bags, packaging, and preservation materials
- Shipping supplies
Keep receipts for all supply purchases. These are direct cost-of-goods expenses deducted in the year they're purchased.
Tannery Costs
Every dollar you pay to a commercial tannery for cape processing is deductible as a cost of goods sold or as a direct business expense. This includes the tanning fee itself and the shipping costs to send and receive hides.
If you're paying $8,000-$12,000 per year in tannery bills (realistic for mid-volume shops), that's a substantial deduction. Document tannery invoices and shipping receipts carefully.
Software Subscriptions
Shop management software like MountChief is deductible as a business expense under the category of software or subscriptions. The IRS treats recurring software subscriptions as ordinary business expenses in the year paid.
This is a frequently overlooked deduction because taxidermists sometimes think of software as a luxury rather than a legitimate business tool. It's not. Any software used in the operation of your business is deductible.
Equipment and Depreciation
Taxidermy equipment, including tools, machines, and specialized hardware, is deductible as a business asset. Large equipment purchases can typically be either:
- Deducted in full in the year of purchase using Section 179 expensing
- Depreciated over multiple years using the Modified Accelerated Cost Recovery System (MACRS)
Examples of depreciable taxidermy equipment:
- Fleshing machines
- Pressure washers
- Walk-in coolers and freezers
- Beetle colony enclosures and heating systems
- Airbrushes and painting equipment
- Professional cameras used for intake documentation
Talk to your accountant about which depreciation method makes more sense for your tax situation.
Vehicle Expenses
If you use a vehicle for business purposes, including picking up specimens from hunting camps, delivering mounts, or driving to supplier shows, that mileage or the actual vehicle expenses are deductible. You can deduct either:
- Actual vehicle expenses (fuel, maintenance, insurance, depreciation) proportional to business use
- Standard mileage rate (67 cents per mile in 2024, check the current IRS rate)
Keep a mileage log if you're claiming vehicle deductions. Record dates, destinations, and business purpose for each trip.
Home Studio Deductions
If you operate your taxidermy shop from your home, you may be able to deduct a portion of your home expenses as a home office or home studio deduction. The IRS allows this if:
- The space is used regularly and exclusively for business (a dedicated studio, not a shared space)
- It's your principal place of business
The home office deduction lets you deduct a proportional share of:
- Mortgage interest or rent
- Utilities (electricity, gas)
- Homeowner's insurance
- Internet service
- Depreciation on the structure (for owned homes)
Calculate the percentage by dividing the square footage of your studio by the total square footage of your home. If your shop takes up 400 of 2,000 square feet, you can deduct 20% of eligible home expenses.
The home office deduction is legitimate and commonly used by home-based businesses. Keep documentation of your space dimensions and expenses.
Professional Development and Memberships
Taxidermy education and professional membership expenses are deductible:
- NTA membership fees
- State taxidermy guild memberships
- Taxidermy competition entry fees (if the competition is related to your professional practice)
- Taxidermy seminars, classes, and training
- Books, videos, and instructional materials related to taxidermy
Self-Employment Taxes
As a self-employed taxidermist, you pay both the employee and employer portions of Social Security and Medicare taxes (combined 15.3% on net self-employment income). The good news: you can deduct half of your self-employment tax from your gross income on your federal return.
This deduction is calculated on Schedule SE and flows to your Form 1040. Your tax software should handle this automatically, but it's worth knowing it exists.
Record Keeping for Tax Purposes
The IRS requires documentation for all business deductions. For taxidermists, that means:
- Receipts for all supply and material purchases
- Tannery invoices and shipping receipts
- Software subscription confirmation emails
- Equipment purchase receipts and invoices
- Mileage logs for vehicle deductions
- Records of any continuing education expenses
Many taxidermists keep a separate business bank account and business credit card, which makes record keeping straightforward: all business expenses flow through those accounts and can be exported at tax time.
Frequently Asked Questions
What business expenses can a taxidermist deduct?
Taxidermists can deduct any ordinary and necessary business expense, including supplies and materials, tannery costs and shipping, software subscriptions, equipment (either in full via Section 179 or depreciated), vehicle mileage for business trips, professional memberships and education, and home studio expenses if operating from home. Keep receipts and documentation for all deductions.
Is my taxidermy software subscription tax deductible?
Yes. Software subscriptions used in your business, including shop management tools like MountChief, are fully deductible as ordinary business expenses in the year they're paid. There's no minimum or maximum for software deductions. If you use it for business, it's deductible. Keep confirmation emails or bank statements showing the subscription charges as documentation.
Can I deduct a home taxidermy studio on my taxes?
Yes, if the space is used regularly and exclusively for your taxidermy business and is your principal place of business. The deduction is calculated as the percentage of your home's square footage that the studio occupies, applied to eligible home expenses including rent/mortgage interest, utilities, and insurance. Consult a tax professional to make sure your home studio qualifies and to calculate the deduction correctly.
Can I deduct the cost of taxidermy tools and equipment?
Yes. Tools and equipment used in your taxidermy business are deductible as business expenses. Small tools and supplies are typically deducted in the year purchased. Larger equipment may be depreciated over its useful life, or you may be able to use Section 179 to deduct the full cost in the year of purchase. Keep receipts for all business equipment.
Are taxidermy competition entry fees deductible?
If you are entering competitions as a professional development activity related to your business, competition fees may be deductible as a business education expense. Similarly, NTA dues, state association dues, workshop fees, and trade publication subscriptions are generally deductible as business expenses. Keep documentation of the business purpose.
How should I track income and expenses for a taxidermy business?
Use a dedicated business bank account for all shop income and expenses. Record each job's revenue, deposit, and balance when collected. Track all expenses by category: supplies, tannery, equipment, insurance, software, and so on. A simple accounting software like QuickBooks or even a dedicated spreadsheet works for most solo shops. Year-end reporting becomes straightforward when income and expenses are tracked consistently throughout the year.
Related Articles
- What Records Must Minnesota Taxidermists Keep for Deer?
- What Records Must North Carolina Taxidermists Keep for Deer?
- What Records Must Ohio Taxidermists Keep for Deer?
- What Records Must Pennsylvania Taxidermists Keep for Deer?
Try These Free Tools
Put these insights into practice with our free calculators and planners:
Sources
- Internal Revenue Service (IRS), Publication 535 (Business Expenses)
- Small Business Administration (SBA)
- National Taxidermists Association (NTA)
Get Started with MountChief
Good financial records throughout the year make tax time significantly easier. MountChief tracks all your job revenue and can export records that support your tax documentation. Try MountChief to keep your shop's financial and production records organized in one place.
