Thursday, July 30, 2009

Im an artist filing my own taxes, questioned about my schedule c, which can I deduct and which cannot?

postal, toll/parking, gas, art shows, car rental, hotel... which of these is deductible and which cant I include on my schedule c

Im an artist filing my own taxes, questioned about my schedule c, which can I deduct and which cannot?
If all of those items are expenses that can be shown to be related to your business of selling art, then they are deductible. You need to make sure that they were all business related, and not part personal to deduct them completely.
Reply:It depends. If your art is a business on which you have reasonable expectation of making a profit, then all of the items you list, assuming they're directly connected with your business, could be deductible. If your activities are judged to be hobby, not business, then you could still include them as deductions against income from your artwork, but would not be able to deduct any net loss against other income.

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