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August 2007 - Fairs and Festivals.Net Monthly Newsletter

March 2009

Paying Taxes on Craft Show Sales  by Natalie Goyette

At the end of the year, you are going to tally all of the revenue you have made and then subtract all of the expenses - this should give you a fairly accurate amount as a net income from your craft show business. This is going to be the amount that you will pay taxx on.

Keep track of ALL expenses - Everything from the lunch you had to purchase at a craft show to the fees for running a website - if it is related to your business, then you need to make sure you include it as an expense of running the business. By being diligent with the receipts you save, you can reduce your taxes a great deal at the end of the year.

Hire a tax professional - It might cost you a few dollars to hire someone to do your taxes, but it sure beats having to do them on your own. Tax pros know most of the ins and outs of the taxation business and therefore they can really help you with ways you can save on your taxes. They may suggest different methods of sheltering your money or deferring money made from craft shows - all in order to help you save money that you would otherwise have to pay to the tax man.

Make donations, contributions, etc - Put money away into a retirement savings plan; give money to the Heart and Stroke Foundation during the year - anything! All of these things give you that added tax advantage, and they allow you to either build for the future, or help a good cause. Talk with your tax professional or financial plan about how you can take advantage of these opportunities.

If your crafts are big sellers on the craft show circuit and you have a great profit margin built into your crafts, there is a good chance that you are going to make a nice profit at the end of the year. That's the part you will have to pay taxes on - and it is just a part of doing business.

About the Author

Natalie Goyette shows you how to make your craft show business profitable in her best selling ebook: Craft Show Success Secrets. Visit her site: http://www.craftshowsuccess.com

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