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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.