Tax Deductions For Artists

May 21, 2021

As a professional artist, you are entitled to a wide variety of tax deductions that help reduce your annual income taxes. Whether you work as an independent contractor or for a specific company, there are deductions your Los Angeles accounting service wants you to know about. Take a minute to review common deductions, as there might be those you were unaware of. 

Supplies & Materials

All of the materials and supplies you use to create various works count as tax deductions, including paintbrushes and paint, sculpting clay, assorted raw materials, canvases, and frames. Glaze, paper, sketch pads, and colored pencils also count since they are “cost of goods sold.” Keep in mind you cannot deduct supplies and materials from art you do not sell or made for personal reasons. 

Business Travel

Whether you traveled once during the tax year for your work or constantly find yourself on the road, you can subtract all related expenses. Deduct plane, train, and bus tickets, gasoline, tolls, vehicle maintenance, meals, hotels, and car rentals. If you do not want to keep track of what you spend on your car, you can use the IRS’s standard mileage rate. Also remember that you can deduct 50% of meal costs only. 

Studio Expenses

If you rent or own your studio, you can deduct the money you spend to keep it. The deduction is essentially the same as the home office deduction, and allows you to subtract a portion or your rent or mortgage payment. You can also take off what you spend on heating and cooling, electricity, internet if applicable, and any repairs that were made throughout the tax year. 

Advertising 

The money you use to advertise your goods and services counts as a tax deduction. Your Encino tax consultants note that all social media campaigns, print media such as flyers and banners, business cards, sponsorships, and digital ads are all deductible. Fees associated with promoting your work, such as spots at local community art fairs and festivals, provide deduction opportunities as well. 
Discuss these and other tax deductions for artists, such as continuing education classes, with Wallace & Associates, your Los Angeles accounting service.