Friday, February 24, 2012

ITS THE LAW - Artist get your Tax Certificate and Collect taxes for your state

Its the Law, Once you start selling a couple of paintings or any other art that you create you must get a tax certificate or license even if you are only selling on the internet. When you sell a painting in your state you have to collect the taxes and give them to your state.
Every state is different, in Florida they tell you that you can do it online for free but that never work, the forms on their website never work. The best way of doing it is to go to your local Department of Revenue, fill out a form it will cost you $5 and you will walk out with your certificate. You will also get a Certificate that will deffer you from paying taxes on materials that you use in creating your art.
Once you have your State Tax Certificate at the end of the year you will have to declare your profit of our annual sales on your Federal income tax. When you calculate your profits remember to deduct all the costs of running your business which includes all material used. You can also deduct your monthly internet fees, ebay fees, paypal fees and any other venue that you are using. You can also deduct the price of trade shows, membership to artist guild, the price of entering a show or competition, advertising on business card and postcards, frames and even some of the power that you are using to maintain your studio and keep track of the gas and car milage that you are using when you are doing things that are related to your new business. If you are just starting out you will be showing a loss and you will be ahead of the game. Keep all receipt and Good luck.

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