![]() The CRA may have published additional guidance and detailed filing instructions on matters discussed in this Chapter. Similarly, the webpage Non-resident actors provides information for non-resident individuals who provide film or video acting services in Canada. Non-resident artists who provide services in Canada may refer to the webpage titled Simplified Regulation 105 income tax waiver application for non-resident artist and athletes for information that may be relevant to them. The reader should, therefore, consider the Chapter’s information in light of the relevant provisions of the law in force for the particular tax year being considered. While each paragraph in a chapter of a folio may relate to provisions of the law in force at the time it was written (see the Application section), the information provided is not a substitute for the law. Due to their technical nature, folios are used primarily by tax specialists and other individuals who have an interest in tax matters. The CRA issues income tax folios to provide a summary of technical interpretations and positions regarding certain provisions contained in income tax law. This Chapter also discusses the tax incentives available to artists and writers who make certain donations, including the special tax incentive for gifts of works of art created by visual artists. ![]() The art production grant exemption allows an artist or writer to exclude from income reasonable expenses incurred to fulfil the conditions of each art production grant, not exceeding the amount of the grant. An artist or writer may be entitled to exclude from income up to an additional $500 (commonly known as the basic scholarship exemption).įor a general discussion of the tax treatment of amounts that are considered a scholarship, fellowship, bursary, prize, or research grant, readers are referred to Income Tax Folio S1-F2-C3, Scholarships, Research Grants and Other Education Assistance. Where an artist or writer receives an art production grant in circumstances where the grant constitutes neither business nor employment income, an exemption is permitted in calculating their income. This Chapter discusses the tax treatment of amounts received by an artist or writer that are to be used in the production of a literary, dramatic, musical, or artistic work (referred to in this Chapter as an art production grant). Other expenses which may be deductible by employees are discussed in Guide T4044, Employment Expenses.Īn artist or writer may receive amounts that are neither business nor employment income, that may be required to be included in income. This Chapter discusses the following permitted deductions: travel, motor vehicle, musical instrument, and artists' employment expenses, which are all subject to certain limitations. Also discussed are the valuation of inventories and deductibility of work space in home expenses.Īn artist or writer who is an employee is restricted in the type of employment-related expenses that may be deducted in computing income from employment. Examples of expenses that are deductible by a self-employed artist or writer are discussed in this Chapter. Accordingly, such an artist or writer is entitled to deduct reasonable expenses incurred in connection with earning income from that business, except to the extent that they are denied, or limited, by a provision of the Income Tax Act. This distinction is important in determining the expenses that are deductible in computing income.Īn artist or writer who is self-employed is generally considered to be operating a business, provided the activity is undertaken in pursuit of profit and there is objective evidence of business-like behaviour which supports that intention. ![]() This Chapter includes the criteria used by the Canada Revenue Agency (CRA) to distinguish artists and writers who are employees from those who are self-employed. Unless otherwise stated, the word artist in this Chapter refers to visual artists, and includes painters or sculptors, and performing artists such as musicians, actors, or other performers. This Chapter discusses the reporting of income by artists and writers from artistic and literary endeavours.
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