Bridge the gap between making art and making a living,
… one tip at a time
Your smARTip for the week:
Tax Time (Part 2): How To Keep More of Your Money
We’re staring down the tax tunnel (just 20 days more and yours truly needs to heed her own advice!) and I wanted to give you three more 3 foundational pointers from Peter Jason Riley’s smARTist presentation: – Watch Your Wallet! Strategic Tax Planning for the Visual Artist:
- Even if you aren’t making sales, yet, keep a record of anything you do that’s leading toward sales (i.e., website expenses, postcard mailing, mileage to local art council meetings, etc.) because it’s the effort the IRS counts, not just sale dollars.
- Your marketing efforts, of any kind, will validate your efforts as a legit business in the eyes of the IRS –so again, keep those receipts!!
- Two surprising facts (for me) in Peter’s presentation concerned what counts as taxable income (he has even more in the full presentation): fellowship awards and endowments!
Your smARTist Move of the week
Even if you have an accountant or bookkeeper taking care of your taxes for you, don’t be lulled to sleep.
There are elements to the tax law that might slip by these professionals, unless they specialize in dealing with artists.
It’s always a good idea for you to be fundamentally knowledgeable so you can at least ask the right questions.
And, if you are a do-it-yourselfer, then all the more reason for you to get information tailored to your work
I invite you to comment, below, and tell us all: do you have any tax tips that you have come across?
P.S. Do you know…
— how to handle charity donations for your artwork?
— how to determine the value of your inventory at the end of a fiscal year?
— A simple way to calculate your “home/studio” office deduction (so simple even I can do it!)
All of this important information will help you keep your hands IRS clean, so you can concentrate on making art.