What Expenses Can Be Claimed in Homemade Postcards?
- Factoring in supplies is a big part of determining expenses for homemade postcards. Since you are selling a product rather than supplying a service, you can claim the supplies used to create your homemade postcards into the "cost of goods sold" portion of your tax return. Additionally, any other supplies you use in conducting your homemade postcard business can be claimed as an expense in the business expenses section.
- If you sell your homemade postcards at craft fairs, farmers' markets, conventions or other events you must travel to, you may be able to claim your travel expenses as a business expense. However, the traveling must be done primarily for business purposes to qualify as a business expense, and you must keep careful records and separate any personal expenditures that may have occurred during the same trip.
Use of Your Home
- Since your home serves as your primary place of business, you might be able to claim its use as an expense. For instance, if you have a room that is used solely as an art studio to create your homemade postcards, or a shed converted to a darkroom exclusively for use in making your postcard photos, you can claim expenses associated with your home for your business, such as a portion of rent or utilities.
Licenses and Legal Fees
- Monies that you pay to properly license your business with your local governments may qualify as an expense, as may fees associated with craft fair, market or event permits. Additionally, if you copyright the images or artwork on your homemade postcards, expenses associated with copyrighting could be eligible. Fees paid to an attorney that wrote a contract, assisted with copyrighting or licensing, or handled any business lawsuits may also be claimed.