A stock photo license belongs on Line 27a, other expenses.
Why line 27a
A licence to use someone else's image, font, music or template is a content cost with no Part II line of its own, so it is described in Part V and carried to line 27a. Short-term and annual licences are expensed as paid. Two facts move it elsewhere: if you bought the image specifically to run an advert, line 8 is the natural home, and if the image is an input into a deliverable you bill a client for, it sits with the costs of that work.
Stop looking up lines one at a time. ClaryBook totals your year into an IRS Schedule C worksheet in form order, Part I and Part II line by line, so a stock photo license lands on Line 27a without you sorting it.
Start for freeWhat a stock photo license is confused with
- Line 8, advertising
- Images and music bought for a specific advert or campaign belong with that campaign on line 8 advertising.
- Line 22, supplies
- If the licensed asset is consumed producing work you bill for, a designer buying a font for a client logo, it is supplies on line 22.
- Line 13, depreciation and section 179 expense deduction
- A perpetual extended licence with lasting value, an image bought outright for product packaging you will sell for years, is closer to an asset recovered on line 13 than a yearly expense.
Examples that belong on line 27a
- $29 single Adobe Stock image credit
- $199 annual 10-image Shutterstock plan
- $16.50 a month Envato Elements subscription
- $350 extended licence for a photo used on product packaging
- $49 royalty-free music licence for a promo video
What does not belong here
- Hiring a photographer to shoot original images, which is contract labor on line 11.
- A camera or lens used to make your own images, which is an asset on line 13.
- Stock images bought for a personal project or a family website.
- Fees to settle an infringement claim, which are a legal matter rather than a licence cost.
What to keep
Keep the licence confirmation and the asset identifier, since the licence terms are also what prove you had the right to use the image. Note which project each licence was for if you split them across lines.
Other expenses on line 27a
| Expense | Line |
|---|---|
| a background check | Schedule C, Line 27a |
| a branded gift for a client | Schedule C, Line 27a |
| a business coach | Schedule C, Line 27a |
| a conference registration fee | Schedule C, Line 27a |
| a hot-desk day pass | Schedule C, Line 27a |
| a payroll service | Schedule C, Line 27a |
| a professional certification renewal | Schedule C, Line 27a |
| a telephone answering service | Schedule C, Line 27a |
| a trade show booth fee | Schedule C, Line 27a |
| a translation service | Schedule C, Line 27a |
| an online course | Schedule C, Line 27a |
| bank fees | Schedule C, Line 27a |
Related lookups
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Sources
This page explains how Schedule C lines work. It is general information, not tax advice for your situation. If an expense is large or the answer turns on a fact about your business, confirm it with your tax preparer.
Looking for a different expense? The full Schedule C line lookup has every line from 8 to 27 with the expenses that belong on each, and Schedule C expense categories walks the whole form in order.
Stop looking up lines one at a time. ClaryBook totals your year into an IRS Schedule C worksheet in form order, Part I and Part II line by line, so a stock photo license lands on Line 27a without you sorting it.
Start for free