Tax Help for Craft Business Owners

  1. Great article but please clarify……..
    In 2019 I buy $20.00 worth of beads at $1.00 a bead. I can’t take a deduction until I sell an item using those beads.
    Example in 2020 I make a necklace and using 10 of those beads, I can now take a $10 deduction when I file my 2020 taxes. Then if I make a necklace in 2021 and use the other 10 beads, I take another
    $10 deduction on my 2021 taxes. Correct?

  2. Nita says:

    I started my craft business in 2022 but I did not make any money. I made under $50 in 2023. What tax forms do I fill out?

    • Lucy Kelly says:

      Hi! This question is best answered by an accountant: the forms you need depend on the legal structure of your business. You need to file whether you made a profit or not 🙂

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