Signal boost - MN Dept.of Rvenue targets working artists

[mmerriam]

Originally posted by catherineldf at Signal boost - MN Dept.of Rvenue targets working artists

The MN Department of Revenue decides that its auditors can define artistic "success" - http://www.minnpost.com/minnpost-asks/2013/04/talking-taxman-about-poetry-and-deductions

Comments

[greykev.livejournal.com]

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<devil's advocate> There are criteria defining what is considered a business, and therefor entitled to credits and exemptions offered to businesses, and what is considered a very expensive hobby, and therefor entitled to diddly as far as tax credits. This affects *all kinds* of sole proprietorships, not just artists, poets and writers. </devil's advocate>

That said, this is an excellent case to push for a revision of those criteria to reflect changing market and industry trends. Will that help them in the short term? No. Will that help other people in the long term? yes. If the comments attributed to the auditor are accurate does that make him or her an asshat? Yes. Is that asshat doing his/her job enforcing the criteria of Minnesota tax laws? Yes, yes s/he is.

[mmerriam.livejournal.com]

I think what really has me upset is the way the auditor seems to be going about it; this idea that if you are not signed by a major record label/book publisher/some other Large Mega Multi-International Entertainment Entity, then you are not serious and should Just Quit and go be a good little Worker Drone for some REAL business.

[pgdudda.livejournal.com]

I think you're touching on something deeply embedded in US American culture: the notion that if you're not wildly successful when running your own business, your business doesn't "count" as "real" and you should go work for "real" people; entangled with this are assumptions about the inherent goodness of "profit" and "earning a living" (and if you're not making money at something, you're not "earning a living" and therefore need to find a "real job").

[timprov.livejournal.com]

There's a weird double-jeopardy thing here. You can be sure that if Minnesota follows through and declares the business a hobby, the feds are not going to give 25 years of self-employment tax back.

The two taxing authorities should not get to have different opinions on what's a business and what isn't.

[greykev.livejournal.com]

I agree, but getting the state legislature to adopt changes to bring MN into alignment with new federal tax laws is a struggle we face every year.

And then there's whatever weird bits of legalese get slipped into MN bills which affect DOR in odd ways having nothing to do with federal taxes.