tag:blogger.com,1999:blog-2472366353445139162.post5477083834027867666..comments2023-09-29T03:10:20.846-06:00Comments on June Walker: Tax & Financial Advisor to the Self-employed: HOBBY OR BUSINESS: Are you a professional artist?June Walkerhttp://www.blogger.com/profile/06012914777750500466noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-2472366353445139162.post-56605987232474160272009-04-13T17:19:00.000-06:002009-04-13T17:19:00.000-06:00Yes, it is too good to be correct. Keep an invento...Yes, it is too good to be correct. Keep an inventory. <br /><br />I have been planning for months to write the definitive post on inventory. However, because there is so much confusion about a relatively recent regulation -- even at the IRS -- I am holding off until I can get at least two sources to agree on something.<br /><br />For now, plan on keeping an inventory. It can be as easy as figuring that in every piece of jewelry you sell, about 20% of the sale cost is actual materials. In which case, for a $100 pair of earrings, your cost of goods sold would be $20. <br /><br />Best,<br />JuneJune Walkerhttps://www.blogger.com/profile/06012914777750500466noreply@blogger.comtag:blogger.com,1999:blog-2472366353445139162.post-78470016277843242582009-04-13T09:38:00.000-06:002009-04-13T09:38:00.000-06:00I'm trying to get a definitive answer concerning t...I'm trying to get a definitive answer concerning the need to show inventory/COGS on my returns. I'm a self-employed jeweler with a part-time "day job". I've shown a small business profit for the past two years - but only because I haven't deducted the cost of raw materials! I have deducted supplies, advertising, mileage, etc., to offset most of my profits from sales. I know several jewelers who just deduct everything they spend rather than treating any unused materials as inventory. That's certainly easier, but is it too good to be correct?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2472366353445139162.post-43974554498777537162009-01-18T17:45:00.000-07:002009-01-18T17:45:00.000-07:00Anonymous --It has no impact on whether or not you...Anonymous --<BR/><BR/>It has no impact on whether or not you may be an artist in business. As a matter of fact, that's the way most artists deal with financial needs -- they have a "job" to help things along.<BR/><BR/>JuneJune Walkerhttps://www.blogger.com/profile/06012914777750500466noreply@blogger.comtag:blogger.com,1999:blog-2472366353445139162.post-5870238643630915542009-01-15T08:35:00.000-07:002009-01-15T08:35:00.000-07:00I do mainly freelance design work and fine art, ho...I do mainly freelance design work and fine art, hoping to make a profit. I consider myself a Creative Professional, and my business is providing creative services. But I also take on temp or contract positions which I am considered a temporary employee. How does that affect my status as a business, or ability to make deductions?Anonymousnoreply@blogger.com