Many people don’t get an opportunity or platform to earn a living from their talent or artwork. There is nothing better than turning your passion into a profession. There are many perks of working as an artist and making money. But along with that, it also adds on some responsibilities, such as managing your finances, profit and loss reporting, transaction bookkeeping, and taxes. Let’s quickly learn what an artist should know about taxes.
● When you start earning as an artist, it would mean you have a
profit motive. Now, you will have to behave like a business. You can be a
painter, musician, sand artist, singer, or an actor; whatever. But from the
moment you start practicing your art for money, then you must start behaving
like a business.
● Keep track of your expenses and know the expenses that you can
deduct. As an artist, some of your expenses, like art supplies, studio rent,
phone, and internet bills are deductible. And, if you spend money on research
like museum trips, art gallery visits, or fairs, it will also fall under a
deductible expense category.
● As a professional artist, you should keep a record of all your
receipts, invoices, and bills. Also, don’t mix your personal and professional
expenses. Open and use a separate bank account. Whatever you spend for business
purposes should be used from the business account only.
The final word
When you decide to become a professional artist and earn money from your artwork, consult with an accountant. You can also hire an expert who can help you in tax preparation for artists. If you don't have much knowledge about finances and taxes, then taking professional assistance becomes necessary. You will have to accept that art is now not just your passion but also the source of your income.
