The Tax Man Cometh

One type of music that I like is original folk music and I just came across an article about a trans-women folk musician who the Minnesota Department of Revenue says owes back taxes.

Thousands in back taxes ride on one question: Is Venus de Mars a professional or amateur artist?
Minnesota Public Radio
By Marianne Combs
July 19, 2013

ST. PAUL, Minn. — Venus de Mars has been a longtime fixture in the Twin Cities music scene, producing seven original albums over the past two decades. Known for provocative stage shows that involve lots of black leather and reverb, the transgender rock musician tours regularly around the country, singing songs inspired by her experience living between genders.

De Mars does not have a day job. She makes about $20,000 a year entirely on her music, painting and other artistic endeavors and considers herself a professional artist.

The Minnesota Department of Revenue, however, disagrees. Its ruling earlier this year defining de Mars as a hobbyist who cannot claim tax deductions for her artistic work could set a precedent that advocates for artists say would put artists' careers in jeopardy.
Now get this…
It listed several reasons, chief among them that de Mars took too much pleasure from her work, and didn't work hard enough to make a profit. As a result, state officials say she owes thousands of dollars in back taxes.

Isn’t that stupid? How do they define “work hard enough”? How many small independent businesses make a profit for the first three years? Is she supposed to hate her work in order to have tax deductions?

Do you know how many struggling artists out would fall under the same criteria and have to pay taxes as they try to get known? I bet all most every independent artist could not take the deductions; could you imagine if Picasso, Dali, Monet and Degas were still alive the Minnesota Department of Revenue would send them a tax bill, sorry you are not real artist, you’re just doing it as a hobby.