How does every other artist cope with this time of year — Tax day is looming. For my husband and myself, who together form “ResslerArt,” it is nerve-wracking.
Our income has pretty straightforward categories: Consignment sales (galleries who themselves take care of sales tax, and we only report the income) Studio and art fair sales (we report and pay sales tax and income tax), teaching, awards, and reimbursements (which are not taxable.)
Somehow it seemed like a good idea to me, at a certain point during 2016, to stop keeping the detailed ledger of expenses I had been keeping.
Bad idea.
We ended up having to re-create it, painstakingly, receipt by receipt for the year.
The expense ledger columns heads are from IRS categories: “Materials,” “Supplies” (yes they are different. You use “supplies” on “materials.” Supplies get used up faster. For us the number one item is ink for our printers.) “Office Expenses” and “Office Supplies” (again — they are different. Office Expenses are like computers and printers. Supplies are like paper clips.)
There are many categories that we never fill up — wage labor for example. But I have columns for them anyway. You never know!
I set up a temporary table near Jay’s computer, with my laptop, big notebooks of paper records, and my laptop with ledgers. Luckily we have always worked well together, so as frustrating as the process is, we never once struck or harmed the other person.
Swearing at the language of the tax forms is another matter. (Thank goodness for Google. I was constantly looking up the difference between one thing and another). But I fear our verbal abuses fell on deaf ears.
Anyway, we came out about even on our business income and expenses, and overall get a refund this year.
Now I’m happy!
