I'm wondering about tax deductions for traveling artists. I must relocate in the summer, like many of us, when the heat dries up FL shows. I spend two months in the Jersey area participating in local shows. I'm wondering how much of those expenses are tax-deductible. Vehicle expenses, rent, etc. Anyone know anything about this?
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I just finished my great 2015 tax adventure. This was my first year travelling outside of NY, so I was curious about this as well. Things I learned from TurboTax:
Seriously, that was the biggest headache ever, and TurboTax makes it easy! And filing in another state as a nonresident...ugh. Next year, I'm paying someone to get a headache for me.
Manda,
couldn't you go back and get the mileage for each trip by using Mapquest or Google Maps?
You know you are driving from point A to point B, so you should be able to use those figures.
I have done that, especially when part of the trip required a deviation from the direct mileage .... like making a stop for a personal visit or something.
When we went to the Louisiana Peach Festival we drove directly up there on Friday. Spent the night and did the festival on Saturday. On Saturday evening after the festival we drove over to dfil's house to spend the night, which was about an hour or so out of the way. We came home on Sunday. I just figured the mileage for the fastest way there and doubled it to get round trip mileage.
Yes, and I tried that. But since it's a personal use vehicle too, TurboTax said the IRS needed to know my total mileage for the year to calculate if I used it for work enough to qualify for a deduction. Or something. I have no idea what my mileage was at the beginning of the year, so I have no idea what my total mileage for the year was, both business and personal.
Better believe I took a picture of my mileage when I figured out that screwed me up :)
Shot in the dark, but if you've had much work done on your car (oil changes, and the like), your mechanic would note the mileage at each visit.
Nope, we do all that on our own. The last time the mechanic noted our mileage was when we had the car inspected in November. I don't think they keep a record of mileage from year to year, just the current mileage.
Costco is selling TurboTax for $15 off their already lower price. Offer expires today, January 29th, so if you are in the market, today's the day.
Also for TurboTax Deluxe users last year, this year's Deluxe will NOT file a Schedule C, D or E. There's been a huge outcry over this, and as a consequence, Intuit has offered last year's Deluxe users a $25 rebate. They sent out an email yesterday, with some lame excuses as to why they crippled this year's version, forcing many users to upgrade to Premiere or Home & Business. If you are filing under Schedule C this year, you will need the Home & Business version.
Rebate info here: https://turbotax.intuit.com/25back
Oooh, thanks for the head's up Jim! Unfortunately, I can't remember why, I went with Home and Business last year, so I wouldn't have been eligible for a rebate anyway. :/ I always just use the web software. But next year, accountant, for sure.
We bought my studio & all the wiring, insulation, plywood, and finishings were added to the total price and I get to do a depreciation on the whole thing each year for a set amount of years. Same for tools, saws, computers, and equipment.
My vehicle was bought just for my business and I claim all the mileage that pertains to my business. Depending on what the percentage of miles is business and what is personal will depict what all exactly you can claim and take.
You can claim a portion of your home and utilities if you do your business from it but it's a percentage based on how many square feet you have and how many are dedicated just for your business. This takes in lots of stuff depending on what your business is exactly.
There are grey areas you may want to take advantage of. If you are an artist that takes trips to take photos of things for inspiration and you use the photos and can show the pieces that you have made that were designed based on what you photographed then you may be able to include the entire trip as part of your business. It's all in what is allowed by law and what proof you have to show the IRS. They love paperwork to look at.
There are some relocation stuff you can take advantage of but I don't know if it's kind of a one time thing or something you can continue each time you relocate. I work on inventory during our off season.
Every artist has a different completely different story based on what they make , how they make it, if they have employees, and how they market their work. I work from my residence and do shows on weekends only so I would be different from those that RV cross country for 9 months out of the year.
You can usually make an appointment with a CPA for a counseling session. Take your paperwork with you and that will help out on both ends a lot.
The fees you pay to a good CPA ( not just a book keeper) are justified and another write off. Other than that keep good records and follow the advice of your CPA. I have been using my guy for 33 years, no problems, no audits.
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