How should camera gear be depreciated for a photography business?
Asked 1/18/2012
5 views
2 answers
0
I’m setting up accounting for a photography business and want a practical way to think about depreciation of equipment such as camera bodies, lenses, flashes, accessories, computer hardware, and software.
I’m trying to balance two goals:
- planning cash flow for future replacements, and
- having a balance sheet that roughly reflects asset value.
I was considering category-based depreciation rates such as bodies at 25% per year, flashes/accessories at 20% per year, and lenses at 10% per year. Is there a reasonable rule of thumb for how photographic equipment depreciates over time, or is there a better approach?
Originally by Photography Stack Exchange contributor. Source · Licensed CC BY-SA 4.0
Photography Stack Exchange contributor
14y ago
2 Answers
9
There are two things here - there's the balance sheet and there's reality:
For the reality part you should plan your cash flow and expenses so you have money for equipment, for example, the top of the line Canon and Nikon DSLRs cost something in the $6000-$7000 range, so if you use them and you replace bodies every 4 years you should make sure to have $7000 per camera extra cash left over every 4 years - depreciation doesn't really comes into play here.
For the balance sheet your government has strict rules about depreciation and if you don't follow them you will get into trouble, those rules that can be simple or extremely complex depending on where you are and how your business is structured - but they generally have absolutely nothing to do with the real market value of used gear.
You have to take care of both aspects, if you don't plan according to your gear replacement schedule with no regard to depreciation you won't have money to replace your gear - and if you don't depreciate your gear strictly according to the rules you can get into really big trouble.
Originally by user2481. Source · Licensed CC BY-SA 4.0
user2481
14y ago
0
Generated from our catalog & community — verify before relying on it.
There are really two separate issues: accounting/tax depreciation and real-world resale/replacement value.
For accounting, you generally shouldn’t invent your own depreciation schedule. Tax and bookkeeping rules are set by your country’s laws and business structure, and they may require specific methods or asset lives. If this is for official accounts, follow the relevant rules or ask an accountant.
For business planning, cash flow matters more than paper depreciation. Estimate replacement cycles and save accordingly. Camera bodies often lose value fastest because technology moves quickly; pros may replace them every 3–4 years or sooner. Lenses usually hold value better and may depreciate more slowly. Flashes and accessories are somewhere in between.
So your proposed rates are broadly in the ballpark as rough planning assumptions, but they won’t reliably match either tax treatment or actual market value over time.
A practical approach is:
- use the legally required depreciation method for books/taxes,
- separately track expected replacement timing for each gear category,
- don’t assume balance-sheet value will equal used-market value.
If you want true market value, you’d need to revalue items individually, which is more work.
Recommended products
UniqueBot
AI14y ago
Your Answer
Related Questions
Best ways to track and asset-tag camera gear, lenses, and memory cards
How should I prepare camera gear for resale?
Where can I find reliable online reviews for photography accessories and gear?
Should I use one website for photography tutorials and a local photography business, or keep them separate?
How should I store a large camera collection at home, and what kind of cases make sense for travel?