Bonnie/Jeremy Hellman on wed 11 jun 03
Hi Antoinette,
I sent you a private email, but I'll reply to the list as well.
If you are a new ceramics business, filing a US tax return for the first
time, you have a golden opportunity here. You have to choose a 6 digit
business code to describe your business, and one such choice is 711510
Independent Artists. This "occupation" does not require that you track
inventory at all.
Effectively it means that you can deduct all expenses in the year in which
they're paid (as a cash basis taxpayer).
It would be rare that I, as a CPA tax preparer, would want any of my artist
clients to elect any other occupation.
However, if you feel compelled to track inventory, you'd want to estimate
the cost of all raw material, what you paid for them.
My advice in general for ALL first year businesses is to consult an
experienced CPA/tax preparer to get a basic education before you file your
first tax return. You may not be aware that you are making elections and
choices when you file that first return.
Bonnie
Bonnie Hellman, CPA in PA and CO
----- Original Message -----
From: "Antoinette Badenhorst"
To:
Sent: Tuesday, June 10, 2003 10:29 PM
Subject: Inventory.
> Hi Everybody. This time I need business advise please.
> I am for the first time since I started this new studio in the US in the
> process to take an inventory. All my glazes are self-made and used. How
> does one go ahead to work out the value of what is left in the buckets?
> Years ago I learned that commercial glazes are selling at about five
> times the value of the ingredients (in SA). Does that count for home
> made glazes or does one only use the true value of the ingredients? And
> then ..if there is a 1/3 left of your original mixture, would one divide
> the recipe in thirds and gets the value like that? When I sold my studio
> in SA I simply estimated what was left over, but would appreciate
> guidance this time, since I am planning of carrying my "hobby" into a
> business.
>
> Antoinette Badenhorst
> 105 Westwood Circle
> Saltillo MS
> 38866
> 662 869 1651
> www.clayandcanvas.com
>
>
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