Book Review: New Tax Guide for Writers, Artists, Performers

People engaged in creative pursuits need to be familiar with the special tax rules that apply to them, and they need a professional tax consultant who can make sure they pay the least tax possible. That's why Peter Jason Riley, CPA has written the most excellent New Tax Guide for Writers, Artists, Performers & Other Creative People.

I purchased the 2012 Edition. Riley updates the book every couple of years as a yearly update is not necessary.

The book was written specifically to help entrepreneurs in the creative fields understand that their tax environment is a little different than the average worker bee, and to help them do a better job of collecting the data that their professional tax adviser needs to keep their taxes at rock bottom levels.

But I highly recommend this book to any tax professionals who want to work with creative people and their businesses. Yes, the creative industries have their own special tax rules, but they are scattered all over the tax code and in IRS published guidance. Riley does an excellent job of bringing it all together in to a cohesive whole, easily understood and easily applied.

My experience has been that people in the creative pursuits have no interest in preparing their own tax return, but they do appreciate a professional preparer that understands them and their needs. That's where Riley's book will help you shine. You do want to shine, right?

So, what types of creative people are addressed in this book? Riley has one chapter that deals with actors, actresses, directors, dancers and other performers. Another chapter deals with musicians and singers, another chapter for visual artists, and another whole chapter devoted to writers.

Riley has a website that goes along with the book and offers tax tips and updates for creatively employed people: www.ArtsTaxInfo.com

The author starts right off with "What Can I Deduct?" But it's more than that. Riley uses realistic examples that he pulls from real life, not just textbook examples that never seem to fit anyone's actual situation.  Most creative types don't just do one thing. They have multiple sources of income: A job with wages, part-time freelance gigs, and royalties or commissions. How to you know which deduction goes with which income? Mileage related to a freelance gig may be deductible while mileage to get to a "day job" might not be. Riley helps you sort all that out.

Most of the book discusses tax reporting in the context of a sole proprietorship, but the author has a very helpful chapter on choosing and setting up a business entity (LLC or Corporation) and a chapter on preparing for and surviving an IRS audit. He also has some helpful information on how to choose a tax professional (including a handy checklist of questions you can ask before handing off your tax work to a pro), and a few ideas on areas where you might consider doing some tax planning (retirement plans, for example).

As far as I'm concerned, Riley's New Tax Guide for Writers, Artists, Performers & Other Creative People belongs on every tax return preparers bookshelf.