From the category archives:

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Why Refusing to Pay Federal Taxes Is an Ineffective Protest of Trump

by Hannah Cole on February 22, 2017
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Frustrated with President Donald Trump’s first four weeks in office? So far, he’s rolled out a sloppy and disgraceful travel ban on Muslims (notably omitting countries he has business ties to), and used taxpayer money to pay for his sons’ jaunts to other countries to promote Trump family businesses. His presidency has been rife with conflict of interest but he has not released his taxes, so there remain few ways to prove it.

It’s not surprising, then, that a lot of talk has surfaced among artists and progressives about not paying income tax this year in protest of the Republican administration’s policies. Is this a good idea?

The short answer is, “No.”

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Rent Too Damn High? Deduct Your Home Studio.

by Hannah Cole on February 6, 2017
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One of the best tax breaks out there is the home office (or home studio) deduction. In tax terms, this essentially turns a portion of your nondeductible personal expenses (your home) into deductible business expenses (a workplace). A lot of people are confused about the rules, and some people are scared to take the deduction at all because they’ve heard that it can be a red flag to the IRS. As long as you are following the rules correctly, there is nothing wrong with taking the deduction. And it’s a big one! So here is some help.

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The Nitty Gritty: How To Prepare for Filing Your Taxes

by Hannah Cole on January 19, 2017
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Nobody likes filing taxes. But thinking ahead and getting your documents lined up reduce the stress of the process. Here are some key ways to prepare yourself for tax season, and get you ready to sit down to your own tax prep software or deliver an organized package to your tax preparer.

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Getting Organized: Financial Resolutions for Artists in 2017

by Hannah Cole on January 6, 2017
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As we enter a the new year, let’s take time to think about the priorities in our arts practices, and in our personal lives. You may roll your eyes at the idea of New Year’s resolutions, but there is evidence that writing down your goals actually helps you achieve them. So grab a pen, and let’s put some intention into 2017.

In my interview with artist Susan Crile about her eight year ordeal defending herself in US Tax Court, there was a lot of discussion about keeping records to prove the profit motive in one’s art practice. It brings up a good question for most of us: how are we doing on our own record keeping? If the IRS sent an audit letter tomorrow, would you feel good about the shape that your records are in? If the answer is not good, don’t panic. Here is a list of what you will need, and some thoughts on how to improve your record keeping going forward.

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An Audit Nightmare Turned Artist Victory: An Interview With Susan Crile

by Hannah Cole on December 15, 2016
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If your arts practice loses money for more than a couple years, the IRS may question the legitimacy of the business – specifically, the profit motive. Typically, they reclassify such a business as a hobby, and disallow the artist from expensing deductions past the point of their income from the activity. That’s bad news for any artist, but it was a near nightmare scenario for artist Susan Crile.

Crile spent eight years in tax court (from 2005-2013), defending her right to take losses. In this interview, we discuss how she proved her case, what it took, and what she recommends for artists in a similar position.

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Your Miami Tax Guide: Yes, You Can Deduct That Piña Colada

by Hannah Cole on November 29, 2016
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After a few weeks diligently absorbing the dark, awful post-election news, I’m ready to turn my attention to fun, sun, and travel deductions for the Miami art fairs.

Let’s talk!

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Genesis BREYER P-ORRIDGE at AICAD: Art Should be Done From Your Death Bed Looking Back

by Paddy Johnson on November 18, 2016
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“Creation is divine work,” proclaimed Genesis BREYER P-ORRIDGE this past Wednesday. God’s first acts were to create the world, and Genesis, an adopted name gestures to this history. H/er words served to introduce a lecture prepared for the seminar class at AICAD and represented the event programming for AFC’s curated exhibition “Strange Genitals”. The talk was something of a divine experience.

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The Hustle: Tax Shelters for the Working Artist

by Hannah Cole on November 1, 2016
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The Hustle is a new bimonthly column in which artist and Enrolled Agent Hannah Cole discusses taxes and finance management for artists. She is the founder of Sunlight Tax. In this week’s column Cole examines tax shelters such as Flexible Spending Accounts and Healthcare Savings Accounts.

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