What sort of tax deductions can you take with a mini based studio?

[Sugarwookie]

Hi,

Please forgive me if this has already been discussed, I don\'t come to the forums much so I might have missed this.
I am curious as I need a part time job to replace the one I just lost and thought about starting a small studio. I\'m curious, as this has got to be a similar type business to a regular artists gallery, what sort of things you can deduct at the end of the year aside from the obvious things. I would ove to hear from anyone who has done it and maybe made a small penny or two. I\'m not looking to get rich, just replace my part time salary. Thanks to anyone who read and responded!


Sincerely,

Wookielol

 

[Zora]

As an addendum...

I\'d like to know what it takes to be called a \"studio\". Couple of friends and I are doing so right now, but we\'re just saying we\'re a studio, not filing for a business license or such.

Ideas?

 

[Sugarwookie]

i guess it doesn\'t take anything, but when you do it the legal way, a studio is probably better than calling it my part of the house I paint in ,LOL!
I don\'t think you have to have a license persee, but I plan on using it as a way to deduct expense I acquire with some camera related freelance stuff I do every year.
It would be great if someone would add some tips !

 

[zenmaster]

You can deduct alot. Materials, supplies, utilities, space rent, advertising. Whenever you spend money on your business record it. One thing I never did when I was self employed was deduct business lunches. You should deduct those to. Take your friends out to lunch. I\'m sure there are people with studios here who are better qualified to speak about this than I.

 

[asphyx]

You can also deduct cigarettes\' and coffee price. I don\'t know for you but I drink coffee/smoke *a lot* while painting.

 

[Sand Rat]

Not knowing where you are, I can only make the vaguest of suggestions based upon the taxes I am familier with -

This is also based upon the assumption you are spending more than the base amount and are itemizing your taxes -

Supplies
Electricity, Water, and other overhead costs
Camera Equipment - how else are you going to advertise -
Supplies for Camera
If film camera - developing costs
Dinners had while discussing mini painting and sales of same painted minis
Trips made while discussing mini sales and painting -
Milage to pick up supplies

and so forth

 

[Sugarwookie]

Thanks everyone!

Okay, for the most part I think I knew most of this. I like the inout though, I need to start smoking and drinking coffee I guess, LOL!
I do know that with retail stores, they have some kinf of deduction for remaining stock at the end of the year. I guess I\'m wondering how people who run galleries go about it, if it can be done. I\'m going to do some deeper looking into it and maybe I\'ll find something overlooked. Thanks again for the inout everybody!

Peace,

D:moon:

 

[zenmaster]

Did you change your avatar today sugarwookie? I was sure it was different.

 

[Sugarwookie]

Avatar.......

Well, yeah.... umm I thought it looked better than the devil head. I came home yesterday and my girlfriend had left me a nice picture on my desktop, so I turned her into a midget and implanted ! I\'m hoping she\'ll take root and replicate!!!!


Dlol

 

[asphyx]

yeap, your avatar is *nice* (a bit small maybe)

 

[Sugarwookie]

Yeah, she is small, too bad I can\'t make her bigger, but then again she\'s good for those hard to reach places.................



Bwa-Ha-Ha!!:|~

 

[Nekron99]

shipping expenses to customers are deductable business expense. It really adds up for me.

Remember to write on the back of the business lunch receipt that you discussed work about xxx with xxx in case youre audited.

trade publications like - WD, harbinger mag, CMON annual, anything that pertains to painting/miniatures etc is deductable. Get a receipt, or print out the online subscription confirmation.

 

[NecroN]

The one item I didn\'t seem mentioned above is travel expenses, gas, oil, hotel, food, etc. This is great for those out of town trips to a city that actually has a gaming store. Now this is in Canada, and I wouldn\'t know how it works otherwize, but for car expenses, you track the km you use for buisness, the km you don\'t, work out the percentage you use your car for buisness and this is the percent you can claim. Now we don\'t run a mini buisness at all, and we are a small buisness partnership, so things may not be the same for a studio.