The other day the United States Tax Court ruled that an artist employed as a professor could still claim tax deductions for his or her independent art practice. The specific case was related to Susan Crile, an artist and professor at Hunter College in NY. The IRS had previously argued that Crile’s artwork was related to her full-time job, but this is clearly a flawed argument.
While this ruling only impacts individuals who produce/sell art independently while also holding a job that involves art making (such as teaching), it’s a start. Next, we hope the courts can tackle the issue of deductions for artwork donated to fundraisers. You may not be aware that if you donate a work in your collection to a fundraiser, you can claim the full appraised retail amount. However, if you are an artist and donate your art you can only claim the material costs. What kinda craziness is that?