THE SUNLIGHT TAX BLOG:
Tax and Money Education for Creative People, Freelancers and Solopreneurs
What are your money concerns? Suggest a blog topic for Hannah here.
-
interviews
- Oct 25, 2022 Vision: Running for Office
- Sep 27, 2022 Paddy Johnson: Real Talk on How to Succeed in the Arts
- May 24, 2021 Nicole Espaillat: A money story of debt, yoga, and buying a house.
- Apr 26, 2021 Why the PPP Loan is Good for Artists
- Apr 6, 2021 Money Management for Creative Professionals
- Mar 31, 2021 Startist Interview: Profit Motive, Marketing, and Tax Tips for Artists
- Mar 19, 2021 ArtWitch Podcast: Permission to Thrive + Money Mindsets
- Mar 2, 2021 Artist/Mother Podcast with Hannah Cole of Sunlight Tax
- Feb 25, 2021 How Can Freelancers Benefit from New Tax Laws?
- Feb 1, 2021 Radio Interview with Hannah
- Sep 30, 2019 The Insidious Role of Gender Bias in How Artists Grapple with Personal Finances
-
personal finance
- Feb 17, 2023 These Are The Money Moves You Should Make Right Now, According to Finance Pros
- Sep 9, 2022 What I've Learned from Doing Artists' Taxes
- Aug 9, 2022 Summer Camp and the Child Tax Credit
- Apr 26, 2021 Why the PPP Loan is Good for Artists
- Mar 19, 2021 ArtWitch Podcast: Permission to Thrive + Money Mindsets
- Mar 2, 2021 Artist/Mother Podcast with Hannah Cole of Sunlight Tax
- Sep 30, 2019 The Insidious Role of Gender Bias in How Artists Grapple with Personal Finances
- Mar 11, 2018 Money and Happiness: Artists' Superpower
- Feb 22, 2018 What's the Deal with Receipts?
- Jun 16, 2017 Business and Personal Accounts: Keep ’em Separated
- Jun 2, 2017 The Personal Finance Attitude Adjustment
- May 19, 2017 A Personal Finance Cheat Sheet for the Overwhelmed
-
podcast
- May 14, 2024 How to Deduct Business Meals When You're Self-Employed
- May 7, 2024 How to Deduct Business Travel
- Apr 30, 2024 Startup Expenses: A Perk for Your New Business
- Apr 23, 2024 Business vs. Hobby & the IRS 9 Point Test for Profit Motive
- Apr 16, 2024 New Rules for LLCs: Update
- Apr 9, 2024 Why It Matters Who You Listen To
- Apr 2, 2024 4 Cases Where Done Beats Perfect
- Mar 26, 2024 How Taxes Can Unlock Your Financial Health
- Mar 19, 2024 Thoughts I've Had About Money
- Mar 12, 2024 1099 vs W2 Income and Why it Matters
- Mar 5, 2024 Insider Deduction Tips
- Feb 27, 2024 How to Deduct Fees, Bandmate Payouts and Gallery Commissions
- Feb 20, 2024 Tips to Make Your Taxes Better Right Now
- Feb 13, 2024 Can a Massage Therapist Deduct Massages? Education Expenses Explained
- Feb 6, 2024 Discomfort Means You're Growing: Estimates and Investments
- Jan 30, 2024 1099s Deep Dive: Listener Questions
- Jan 23, 2024 What Are Receipts Actually For?
- Jan 16, 2024 Issuing 1099s
- Jan 9, 2024 Respect Your Work, Then Get Organized
- Jan 2, 2024 The De-Stress Your Taxes Checklist
- Dec 26, 2023 Tax Credits and Law Changes Not to Miss
- Dec 19, 2023 Lower Your Taxes at Year-End, Prevent a Cash Crunch
- Dec 12, 2023 New Rules for LLCs: How The Corporate Transparency Act Affects You
- Dec 5, 2023 Understand Your Tax Rate
- Nov 28, 2023 FU Money for the People
- Nov 21, 2023 Donating Your Work isn't a Charitable Deduction
- Nov 14, 2023 Set Up Your Calendar for Tax Success
- Nov 7, 2023 Your Personal Finance Attitude Adjustment
- Oct 31, 2023 Money Cheat Sheet for the Overwhelmed
- Oct 24, 2023 The Right Step at the Right Time
- Oct 17, 2023 Your Business Already Started
- Oct 10, 2023 How to Reduce Tax Overwhelm
- Oct 3, 2023 How I Got Here: Interview with Kelly Bennett, Brand Strategist
- Sep 26, 2023 Farnoosh Torabi: When Financial Fear is Good
- Sep 19, 2023 My top 4 ROIs (Returns on Investment)
- Sep 12, 2023 Mistakes People Make When Working with an Accountant
- Sep 7, 2023 Your Complete Guide to the New Student Loan Forgiveness
- Sep 5, 2023 3 Secrets to Extra Money in Your Tax Deductions
- Aug 29, 2023 LLCs & Why You Need to Separate Your Accounts
- Aug 22, 2023 The Child Care Tax Credit
- Aug 15, 2023 Taxes Should Be Part of Civic Education: A Story of Hope
- Aug 8, 2023 10 Minute Tax Fix: Do a Paycheck Checkup
- Aug 1, 2023 Oops! How to Fix a Tax Mistake
- Jul 25, 2023 What is a Schedule? Capital Gains, Self-Employment Tax and Itemized Deductions
- Jul 18, 2023 What I do With My Money
- Jul 11, 2023 How to Have it All
- Jul 4, 2023 Why I'm Patriotic (Proof of Real Progress)
- Jun 27, 2023 The One Thing You Must Do in Your Business
- Jun 20, 2023 Medical Expense Deductions: When it's Worth Tracking & How
- Jun 13, 2023 The Business Advantages of Creatives
- Jun 6, 2023 BTS: How I Structure My Day for Better Focus
- May 30, 2023 BTS: Creative Career Advice from Architect John Cole (aka My Dad)
- May 23, 2023 BTS: Tips for Your First Hire
- May 16, 2023 S Corp Mistakes That will Cost You Thousands
- May 9, 2023 Tips to Ensure You Pay Yourself
- May 2, 2023 Re-framing Finances for Creatives
- Apr 25, 2023 What Counts As Taxable Income?
- Apr 18, 2023 3 Tips for Easier Taxes
- Apr 11, 2023 Is it Ok to Get a Tax Extension?
- Apr 4, 2023 Aggressive Means "High Growth"
- Mar 28, 2023 How to Stash More FU Money: The SECURE 2.0 Act Expands Your Retirement-Funding Options
- Mar 21, 2023 The Mental Load of Financial Fear
- Mar 14, 2023 Do I Need an LLC?
- Mar 7, 2023 The Home Office Deduction
- Feb 28, 2023 How to Fund Your IRA: Pay Yourself First
- Feb 21, 2023 When Do You Actually Need an Accountant?
- Feb 14, 2023 Estimated Quarterly Taxes: How To Calculate Your Payments
- Feb 7, 2023 Estimated Quarterly Taxes: Breaking It Down
- Jan 31, 2023 1099s: Your Top Questions
- Jan 24, 2023 Tips to Set Up for Easy Taxes
- Jan 19, 2023 How to Issue 1099s
- Jan 17, 2023 10 Reasons Self-Employed People Get Stuck with Money, and How to Fix It
- Jan 10, 2023 What Small Business Bookkeeping is Actually For
- Jan 3, 2023 Taxes, Democracy, and the Largest Climate Bill in US History
- Dec 27, 2022 Taylor Smalls: Taking the Leap from Architecture to Full Time Art
- Dec 20, 2022 Phrases to use for Boundaries & Pricing with your Clients
- Dec 13, 2022 Tax and Year-End Planning
- Dec 6, 2022 Pricing and Business Lessons
- Nov 29, 2022 Imagine (Sneha Shrestha): Street Art, Authenticity, and Connecting Savings to Creative Freedom
- Nov 22, 2022 Gretchen Carder: Prestige is Not Payment: Textiles, Covid Pivots + Bookkeeping as Self-Care
- Nov 15, 2022 What it Costs You to Wait: Money School
- Nov 15, 2022 Don't Hustle, Don't compromise, Just Maximize: Money School Bonus Series
- Nov 10, 2022 Why Business Deductions Save More Than You Think: Self-Employment Tax: Money School
- Nov 8, 2022 Receipts & Bookkeeping Demystified: Money School bonus series
- Nov 3, 2022 Here's How to Cancel Your Student Debt: Money School Bonus episode
- Nov 1, 2022 What Accountants Get Wrong About Creative People: Money School
- Oct 25, 2022 Vision: Running for Office
- Oct 18, 2022 Itemized vs. Business Deductions: Ending the Confusion
- Oct 11, 2022 Perfectionism will Kill You
- Oct 4, 2022 Roth vs Traditional IRA: Does it Even Matter?
- Oct 4, 2022 What's Going on in the Economy Right Now?
- Sep 27, 2022 Paddy Johnson: Real Talk on How to Succeed in the Arts
- Sep 20, 2022 Proof You're Doing Fine: Break Even Point
- Sep 13, 2022 Mileage: The Best Tax Deduction You're Missing
- Sep 9, 2022 Erika Hess: Podcasting, Art, Motherhood and Widening the Circle
- Sep 9, 2022 Money is Gas in the Car
- Sep 9, 2022 What I've Learned from Doing Artists' Taxes
- Sep 1, 2022 Introducing the Sunlight Podcast
-
retirement savings
- Sep 9, 2022 What I've Learned from Doing Artists' Taxes
- Jul 25, 2022 The Second Best Time is Now
- Mar 11, 2018 Money and Happiness: Artists' Superpower
- May 19, 2017 A Personal Finance Cheat Sheet for the Overwhelmed
- Mar 14, 2017 The SEP IRA: A Lovesong
- sales tax
-
self-employment tax
- Feb 17, 2023 These Are The Money Moves You Should Make Right Now, According to Finance Pros
- Sep 9, 2022 What I've Learned from Doing Artists' Taxes
- Apr 6, 2021 Money Management for Creative Professionals
- Mar 31, 2021 Startist Interview: Profit Motive, Marketing, and Tax Tips for Artists
- Mar 2, 2021 Artist/Mother Podcast with Hannah Cole of Sunlight Tax
- Feb 25, 2021 How Can Freelancers Benefit from New Tax Laws?
- Dec 27, 2018 Translating the New Tax Bill for Small Businesses
- Oct 24, 2018 No, You Really Can't Get a Deduction for that Artwork You Donated to Charity
- Feb 22, 2018 What's the Deal with Receipts?
- Apr 18, 2017 Set up For Your Best Year Ever: A Tax Day How-To
- Mar 23, 2017 Some Real Numbers for Artists on the ACA Repeal
- Mar 14, 2017 The SEP IRA: A Lovesong
- Aug 4, 2016 Estimated Quarterly Taxes for the New Freelancer
- May 7, 2016 Self-Employment Tax for the New Freelancer
-
tax credits
- Aug 9, 2022 Summer Camp and the Child Tax Credit
-
tax policy
- Oct 25, 2022 Vision: Running for Office
- Sep 20, 2022 Proof You're Doing Fine: Break Even Point
- Apr 6, 2021 Money Management for Creative Professionals
- Mar 25, 2021 What’s in the $1.9 Trillion stimulus plan?
- Mar 19, 2021 ArtWitch Podcast: Permission to Thrive + Money Mindsets
- Mar 17, 2021 Unemployment Tax Savings from the 2021 Stimulus Bill
- Feb 23, 2021 What Do Arts Organizations Need to Know About the Federal Shuttered Venue Operators Grant?
- Jul 15, 2020 How Banks Artwash the Funds that Enable Police Brutality
- Mar 13, 2020 Some of the Art World’s Largest Donors Have Paid Millions to Squelch a Wealth Tax
- Mar 27, 2019 Tax Policy Should be Part of Our Basic Civic Education
- Dec 27, 2018 Translating the New Tax Bill for Small Businesses
- Sep 24, 2018 How the New Tax Cuts and Jobs Act Impacts the Art World
- Feb 22, 2018 What's the Deal with Receipts?
- Jan 30, 2018 How The New Tax Bill Affects Freelancers
- May 2, 2017 The Estate Tax: An Economic Justice No-Brainer
- Apr 4, 2017 Charitable Deductions for You, Me and Warren Buffet
- Mar 23, 2017 Some Real Numbers for Artists on the ACA Repeal
- Nov 15, 2016 How Donald Trump's Tax Plan Will Affect Arts Workers: There's Bad Stuff Coming
-
tax savings
- Aug 9, 2022 Summer Camp and the Child Tax Credit
- Mar 31, 2021 Startist Interview: Profit Motive, Marketing, and Tax Tips for Artists
- Mar 25, 2021 What’s in the $1.9 Trillion stimulus plan?
- Mar 17, 2021 Unemployment Tax Savings from the 2021 Stimulus Bill
- Feb 25, 2021 How Can Freelancers Benefit from New Tax Laws?
- Feb 23, 2021 What Do Arts Organizations Need to Know About the Federal Shuttered Venue Operators Grant?
- Dec 27, 2018 Translating the New Tax Bill for Small Businesses
- Apr 18, 2017 Set up For Your Best Year Ever: A Tax Day How-To
- Mar 14, 2017 The SEP IRA: A Lovesong
- Feb 6, 2017 Rent Too Damn High? Deduct Your Home Studio.
- Nov 1, 2016 Tax Shelters for the Working Artist
How to Deduct Business Travel
LISTEN AND SUBSCRIBE HERE
How to Deduct Business Travel
Today, I’m talking about an important topic for entrepreneurs: business travel and deducting business travel on your taxes. I’m highlighting the importance of understanding the rules for deducting transportation costs, accommodations, and meals, and sharing how you can properly document your travel so you can avoid getting audited by the IRS.
Join me in this important episode to learn how you can distinguish between what’s deductible and what’s non-deductible when it comes to business travel expenses.
LISTEN AND SUBSCRIBE HERE
Today, I’m talking about an important topic for entrepreneurs: business travel and deducting business travel on your taxes. I’m highlighting the importance of understanding the rules for deducting transportation costs, accommodations, and meals, and sharing how you can properly document your travel so you can avoid getting audited by the IRS.
Join me in this important episode to learn how you can distinguish between what’s deductible and what’s non-deductible when it comes to business travel expenses.
Also mentioned in today’s episode:
Mixing personal elements with business travel and how to deduct properly 8:05
The 4 qualifications for deducting foreign travel costs 17:40
Deducting travel costs for inspiration without getting audited 27:15
If you enjoyed this episode, please rate, review and share it!
Links:
Right Back to It, Waxahatchee featuring MJ Lenderman
Free 20 Minute Course on Filing your BOI Report for LLCs: www.sunlighttax.com/llc
Your Miami Tax Guide: Yes, You Can Deduct That Pina Colada
After a few weeks diligently absorbing the dark, awful post-election news, I’m ready to turn my attention to fun, sun, and travel deductions for the Miami art fairs.
To review the basics, if you’re a professional artist with a profit motive, you’re reporting your income each year on a Schedule C (as part of your 1040 form), and the beauty in that is that it entitles you to list your income and your expenses. So as a self-employed person, you are paying taxes on the difference between those numbers (aka your “profit,” which is income – expenses), and not on the gross income you receive.
Travel expenses incurred in your arts business are one of the great deductions that you are allowed. A note of caution before you go expensing a bunch of luxury accommodations though: by law, your business expenses must be “ordinary and necessary” to qualify. This means that if the industry standard is a Motel 6, and you book the Ritz-Carlton, you may deduct only the Motel 6 amount. Further, travel expenses are a tempting area for tax abuse (along with meals and entertainment and home studios). If yours are out of proportion with the size of your business, or compared to your peers, you have an excellent chance of being audited.
Warnings aside, travel deductions are a great benefit, and here is how to make the most of them, in time for the Miami art fairs.