While artists need to spend hour upon hour training and perfecting their craft, it can be easy to lose sight of other important factors when it comes to their work. Taxation is an unfortunate necessity in life, nobody enjoys tax time but everybody has to go through this process.
While it is often advised that you utilise the service of a licensed accountant when it comes to dealing with your taxes, there are a number of simple steps you can take yourself in order to save on your tax bill or obtain some tax refunds.
It is worth your time looking into this as you will save yourself substantial sums of money over the long run, money which could be spent on developing your skills and even setting up your own gallery. Here are some tips to keep in mind when you are dealing with your taxes.
Ensure That You Thoroughly Keep Up To Date with Your Tax Return Obligations
Even if you are in a loss making position, you still need to file a tax return if you are receiving an income from your work. It is vital that you set up a solid foundation in the beginning, as it will make things a lot less stressful when it comes to tax time as well as minimising the chance of you making a mistake or losing vital information.
The last thing you want to happen is to fall foul of the tax man as a result of not adequately following the tax compliance regulations. You need to keep a detailed record of all your expenses, whether it is transport or equipment. Therefore, you should have a detailed record of the dates, exact amounts along with receipt for each and every expense that you have incurred over the time period. This allows you to make a tax deduction which will save you substantial money.
If you are in a bad position where you are making a loss in your business, you may be in line for a refund on your income tax.
Factor In Any Exposure to Foreign Taxes
Even if you are a resident of only one specific country, you may have to pay certain taxes in other countries as a result of selling items that are tax liable in those regions. Make sure that you know what is required of you when it comes to selling your art in other countries. You may have to register in these regions and follow all of the relevant protocols.
Do You Qualify For An Artist Exemption?
It is worth your while learning about all of the different schemes and exemptions that are available to artists such as yourself. Many countries have these special tax rebates and discounts for those pursuing such artistic forms. Art is a vital part of any culture and it needs to be encouraged in order to keep up with the strong tradition.