Collecting and Paying Taxes for Your Arts/Crafts Business
- Depreciating Assets (7)
- Preparing Employment Tax Returns (7)
- Sole Proprietors and Schedule C (10)
- Tax Deductions for Vehicles (3)
Getting Familiar with Simplified Home Office Deduction
Sole proprietors that operating their business out of their home can elect the simplified home office deduction starting with their 2013 tax returns. Rather than preparing Form 8829, the expense is calculated by taking $5 times the home office square footage.
Preparing the Income Section of Form 1120
If you operate your arts and crafts business as a straight-out corporation you file a Form 1120 to report your items of income and loss. This article shows you how to fill out the header and income section of Form 1120. Even if you don't want to prepare your own Form 1120, it's a good idea to have a basic understanding of what goes on a Form...
Walking Through Preparing a Schedule C
Arts and crafts businesses in the United States who operate as a sole proprietorship attach Schedule C and Form Se to their Form 1040 to report net income or loss from business operations. Find out how to prepare the Schedule C and Form SE. This information will come in handy regardless it you hire a tax professional to prepare your return or...
Tax Considerations for Self-Employed Arts and Crafts Vendors
Handling the tax obligations of self-employed arts/crafts businesses can be confusing. Federal, state and local government can assess taxes. These taxes can show up in the form of income, sales, and use taxes. Find out more about the different type of self-employment taxes and which ones you may be liable for.
Walking Through Form 1120 Schedule J and K
If your arts and crafts business is a corporation you file Form 1120 to report your taxable income. Find out about Schedule J and K which you use to calculate your federal income tax and answer basic questions about your business.
Filing for a 1040 Extension
All individuals in the United States can opt to extend the submission of their federal income tax return Form 1040 and all attachments from April 15 to October 15 using Form 4868. If you've never had to file an extension you may be a little nervous about doing it and want to be sure that you follow all the rules. This article gives you the full...
Arts and Crafts Costs and Expenses - Learning About Cost Behavior
You don't have to be an accountant to be familiar with expenses. Expenses are supplies, raw materials or services for your arts and crafts business you receive for an exchange of cash or a promise of cash that directly match to revenue you earn in a specific financial period.
Finding Out If Casual Income Subject to Income Tax
Are you a part-time artist or crafter wondering if there is any limit under which you don't have to record your income from selling your arts and crafts items? An arts and crafts reader posed this question - find out the answer! Also discussed are garage sales and self-employment tax.
Arts and Crafts Hobby Loss Rules
If you operate as a sole proprietor, partnership, or S-Corporation to be able to write off your arts and crafts expenses, your work has to be regarded as a business rather than a hobby. The IRS has strict criteria as to the definition of a hobby versus a business. Find out the difference between the two.
Double Taxation and Corporate Distributions
There are few instances of double taxation in USA Internal Revenue Code. However, the taxation of corporate dividends and S-Corporation distributions is handled differently. Find out how to handle each one and why in the final analysis, neither is a tax-free transaction to you.
How to Organize Tax Information
Simple tips to use when organizing your tax information.
Maximize Your Business Income Tax Deductions
This three part article on small business tax deductions covers keeping track of your business expenses throughout the year, tax deductions related to the cost of doing business, and home business tax deductions.
Sales Tax Versus Income Tax
Definition of the the Fair Tax plan and how it may affect US businesses.
Reporting Corporate Total Income on Federal Tax Returns
If you operate as a corporation or S-Corporation, report your arts and crafts taxable gross income in Part 1 of the Form 1120 or 1120S respectively. Calculate it by subtracting your cost of goods sold from your arts and crafts business revenue. Check out these step-by-step instructions on how to transfer amounts from your income statement to the applicable corporate federal tax returns.
Donating Arts and Crafts Surplus Inventory
One of my bad habits is to buy more inventory than I need. Sometimes, there’s a business purpose such as volume purchasing to get a bigger discount or I think I’ll have a use for raw materials I’m buying. Other times, I just don’t sell as much of an item as I think I will. Rather than having inventory sitting around getting dusty, find out how to donate inventory and take a business deduction.
Tips for Staying Audit Ready
Getting that letter in the mail from the Internal Revenue Service or your state department of revenue that your business tax return has been selected for examination is never a pleasurable experience. Even if you had a professional help, you still have a tendency to worry about what you may have screwed up – even if it was an inadvertent mistake. Here are my tips to managing your arts and crafts business records so that you’ll consider an audit a minor irritation rather than a horrifyingly stressful event.
Using Office in the Home Prudently
One area of confusion when deducting business related expenses is office in the home. To be able to write off part of your home as an arts or crafts business expense you have to use that part regularly and exclusively for your arts or crafts business. Not quite sure what this means? This articles spells out what qualifies as regularly and exclusively.
Filling Out Form 941 Page 2
If you have employees for your arts or crafts business, you need to fill Form 941 four times a year. This article shows you how to fill out page 2 of Form 941.