Clay Times Back Issues Vol. 4 Issue 14 • Jan/Feb 1998 | Page 21

Tax Tips for Clay Artists
BY POLLY BEACH

As tax time once again draws near,
it’s time to consider a few ways to
make this year’s process of filing a little less painful.
First, file early! If your organizational skills aren’t exactly your strong
point, it may take a while to collect last
year’s records so you can complete
your return. Avoid frustration and
pressure by assembling records now.
Keep an accurate inventory of finished stock and raw materials. At the
end of the year, you should already
have done this. If not, you’ll have to
“guesstimate”...but make plans to
inventory your studio at the end of the
year so next year’s tax data is accurate.
Hopefully your expenses are easily tracked because you’ve used just
one form of payment for all business
expenses, such as a company checking
account. If you use a credit card, use it
solely for business expenses: it can be
especially difficult at year’s end to separate personal expenses from business
expenses on bills with multiple
charges. Also, try to pay off your credit
card monthly so you’re not burdened
by finance charges and hefty late fees.
Advantages to credit card payment
include interest-free 28-day “loans” (as
long as your bill is paid on time), plus
the ability to rack up extras like frequent flyer miles or end-of-year
rebates. Shop around for these offerings, and shoot for the lowest interest
rate available. Some cards also double
the manufacturer’s warranty for any
equipment purchased with that card.

JANUARY/FEBRUARY 1998

Be sure to deduct your mileage
for business-related travel at $.31/mile.
This includes shopping for supplies,
delivery of products to galleries, travel
to and from craft fairs, etc. The catch
here is that you MUST document your
mileage in the form of a written log. If
you don’t already have one, spend a
few dollars now for a log that you can
keep in your glove compartment yearround...and vow to record the mileage
of every trip for next year’s tax return.
Don’t forget to deduct such
expenses as local taxes and license
fees; cost of insurance and professional
services; utilities used solely for your
studio/office/kiln firing; equipment
and supplies purchased throughout the
year; promotional printing and mailing
expenses; retail sales tax collected and
paid; hired help; advertising; and business-related conferences, classes, seminars and workshops.
Make use of the IRS’s information services. To request tax forms and
instructions, call 1-800-TAX-FORM.
Better yet, visit their web site to download tax forms and instructions at:
http://www.IRS.gov. The web site also
features tax news and statistics, info.
on electronic filing, tax help and education, what’s new this year, and more. If
you have a fax, use your fax handset to
dial the IRS “Tax/Fax” service at 703368-9694 and follow the voice prompts
to request instant delivery of forms by
fax. And finally, if you’d feel more
comfortable hiring someone to prepare
your taxes for you, go right ahead: that
expense is tax-deductible, too! ■

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