How do I claim material expenses for art installation projects?

 

Self-employed

As per CRA - You can deduct expenses you paid in 2019 to earn employment income from an artistic activity if you did any of the following:

  • composed a dramatic, musical, or literary work
  • performed as an actor, dancer, singer, or musician in a dramatic or musical work
  • performed an artistic activity as a member of a professional artists' association that the Minister of Canadian Heritage has certified
  • created a painting, print, etching, drawing, sculpture, or similar work of art. For income tax purposes, it is not an artistic activity when you reproduce these items

Self-employed

Thanks for your response Brenda. The link you sent is for Employed Artists. Is it the same for self employed? Let me describe the situation. I created a temporary installation for an art festival 2019. I got about $8000 in combined contributions towards the project from the venue and host. I spent about $6000 in materials and rentals to make the installation. Does that mean I should claim the remainder ($2000) as income? Or should I claim all $8000 as income and $6000 in business expenses. It just seems like project materials are a different category than office stationary etc. Thank you!

Self-employed

You will claim your total income if it was $8000 and you will enter your expenses under either supplies or inventory. Make sure you have all your receipts in case CRA asks you for proof. 

Self-employed

Ok, thank you.