TAfter 10 years in our current location, watching the once sleepy NE neighborhood fully awake from its ungentrified slumber, we are now making plans to move this coming spring and with that move, marking the end of the Gallery @ Fox Tax. To celebrate and reminisce on the last 10 years of art events, we will be stuffing the walls to the brim with work from over 20 of our most illustrious alumni in a jam-packed 10 year retrospective extravaganza! Opening reception will be held on January 14, 2017 from 6 to 10 pm.
We all want to make a living doing something we enjoy. For many artists, making money isn't the central goal, and running a business isn't even a concern. However, success in creating and disseminating your work requires certain business-like considerations. The first question for yourself (and the first thing the IRS will be interested in knowing) is whether or not your art is a business or a hobby.
Most artists do not make a profit, and incur losses for great spans of time. You are allowed to deduct these losses on your tax return, but only if you can show that you are carrying on the activity for profit, or the attempt at profit.
The following is a list of factors that the IRS considers in determining whether or not you are a for-profit business:
Not all of these must pertain to you, but you should be able to show that you are trying to make a profit and that you are running things in a business-like manner. The best way to do this is to BE ORGANIZED, keep track of your income and expenses. Poor to none in record keeping is a good sign that the IRS can classify your art as a hobby and disallow any losses you may try to take. With very little effort, you can avoid this.
Another easy way to show your determination as a for-profit business is to take the time to establish the proper business entity for your art. To do so shows that you are serious about being successful (and yes, you still need to keep good records!). Please see the article on choosing a business entity type for more info on this subject.
NOTE: Although the above focuses on artists, the same rules apply to any business that may incur losses for numerous years.
Please Contact Us for more info.