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income tax and fellowships

updated sat 29 jul 06

 

Thom Maltbie on thu 27 jul 06


I know this isn't tax time, but I'm thinking ahead. I've received a very
generous fellowship grant. With the money, I'm buying equipment and
materials, and travelling to acquire knowledge. The pieces I'll be making
will be installed in a public place, so I won't really own them, nor be paid
for them. The equipment will be mine permanently. I was told by the
foundation granting the fellowship that I should be prepared for the tax
liability in 2007.

I know there are greater accounting minds on this list, and I felt intrusive
in contacting anyone personally, so I'll post here. I want to know if I can
treat the fellowship funds as studio income, expense the equipment, deduct
supplies, etc., as if it were business. Discuss it if you like or contact
me offlist. Thanks in advance.

Tony Ferguson on fri 28 jul 06


Thom,

I just received a ARAC Mcknight Fellowship and yes you must consider it income. It does not go under your regular income but under an area called something like "Grants, Fellowships, etc". I use HR Block software and it was worked very well.

Tony Ferguson


Thom Maltbie wrote:
I know this isn't tax time, but I'm thinking ahead. I've received a very
generous fellowship grant. With the money, I'm buying equipment and
materials, and travelling to acquire knowledge. The pieces I'll be making
will be installed in a public place, so I won't really own them, nor be paid
for them. The equipment will be mine permanently. I was told by the
foundation granting the fellowship that I should be prepared for the tax
liability in 2007.

I know there are greater accounting minds on this list, and I felt intrusive
in contacting anyone personally, so I'll post here. I want to know if I can
treat the fellowship funds as studio income, expense the equipment, deduct
supplies, etc., as if it were business. Discuss it if you like or contact
me offlist. Thanks in advance.

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Tony Ferguson
...where the sky meets the lake...
Duluth, Minnesota
Artist, Educator, Web Meister
fergyart@yahoo.com
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(218) 727-6339
http://www.aquariusartgallery.com
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