Jump to content

Industry codes for taxes


Recommended Posts

I have searched for this through the threads and not found much on this, so I'm curious which industry codes folks are using for their taxes? I'm in Canada if that helps. 

711500 - independent artists  - this feels like it make be a stretch since I make mostly functional ware

or

327100 - Pottery, ceramics and plumbing fixture manufacturing - this meets the description, but it's within manufacturing which I feel is quite far from small batch handmade ceramics 

Thank you in advance for any sharing!

Link to comment
Share on other sites

what is the $$$ difference?   i would think you work as an artist.   in the category artist, is there a requirement for what media you choose to use?   are oil painters considered different from watercolorists and there is a $ difference?    as a manufacturer must you be in a business category that requires more $ from you?  ask an accountant for the category you fit best for your own pocketbook.  legally, of course, but  saving on taxes is always wise.

 

Link to comment
Share on other sites

@oldlady It’s mostly a StatsCan thing. The government just wants to be able to track trends within industries. It doesn’t change the amount of tax you do or don’t pay.

edited to add: 

Mostly because we’re self employed, our taxes are figured based on our gross earnings, minus any tax credits or deductions we may be eligible for. Office expenses are office expenses, whether you’re an accountant using a printer for documents, or an artist printing business cards or shipping labels. Equipment is depreciated, whether it’s a welding rig or a kiln. Mileage can be calculated and deducted a few possible ways, depending on what makes the most sense. If I wood fired, you can write off a pair of steel toes every year, same as any construction worker.

Link to comment
Share on other sites

thanks, callie.   canada seems to have a sensible set of rules.

i do remember going through all the zoning regs when i moved to a new county in virginia.   artists were exempt from a lot of rules that applied to other businesses.

Link to comment
Share on other sites

Thanks all for the advice. I know the industry code doesn't affect the $$ of it in Canada. But I'm also aware that CRA expectations around profit vary for different sectors. If 327100 seems to be the consistent code, then I'll use that (with the proper tax guidance of a professional etc etc). I just didn't want to use it if that was unheard of in the sector!

Link to comment
Share on other sites

I think they only look at you sideways if you start making markedly above the typical threshold for the category, and because they treat it like light industry, there’s plenty of room for the typical earning level of potters. You can make less, and as long as your deductions look reasonable and you remit your GST/HST properly, they don’t give anyone any trouble. I was explaining the Stats Can thing more for Oldlady, and anyone else who’s not Canadian. 

Link to comment
Share on other sites

Well it's also from my first husband's experience with the CRA 'artist' designation. While it's harder to get revenue canada to accept that you are one, once you are accepted, you can claim losses for a lot longer than other industries! Just anecdotal ramblings from an arts professional...

I'll be claiming a loss for the first year of my business - didn't make enough to cover the set up costs, but almost got there! Like, so close! But the kiln...

Back when I briefly dabbled in a home based business - actually a total MLM, -I had losses for years before finally realizing there was no cash to be made and got out. The saddest thing was reading on forums when women would talk about how losses were great because they reduced their taxes, and I'm like, no, you would do better not making the losses, like $100 in loses saved you $20 in taxes! But they were convinced their business expenses (that grossly outweighed their profits) made it all worth it. UGH.

Link to comment
Share on other sites

1 hour ago, Juliagoolia said:

Well it's also from my first husband's experience with the CRA 'artist' designation. While it's harder to get revenue canada to accept that you are one, once you are accepted, you can claim losses for a lot longer than other industries! Just anecdotal ramblings from an arts professional...

There used to be a better category, 711511 which was Independent Artists and Artisans but I believe that's been gone for about 10 years now. There is a good book by Chris Tyrell called the Artist Survival Skills - How to Make a Living as a Canadian Visual Artist. It's written for 2D artists but much of what is written is germane to 3D artists also.  (he is a super funny guy if you ever get the chance to hear him speak)

Link to comment
Share on other sites

15 hours ago, Min said:

There used to be a better category, 711511 which was Independent Artists and Artisans but I believe that's been gone for about 10 years now. There is a good book by Chris Tyrell called the Artist Survival Skills - How to Make a Living as a Canadian Visual Artist. It's written for 2D artists but much of what is written is germane to 3D artists also.  (he is a super funny guy if you ever get the chance to hear him speak)

Yes, I felt like there had to be some artisan section... but nope. I will lump myself in with massive ceramic factories and people who make plumbing fixtures!

And yes, the MLM was a window in to a whole new world of strangeness. And now I am even angrier because I know how much it costs to be on an ecommerce site. They were charging their 'consultants' 15/month just to have their own online portal, that was the company's website, non-customized, but you would get the sale credit from your customers. $15! I really need to start my own MLM. There is so much money to be made.

I may have a loss this year but it's with all my capital and start up supplies, so I'm feeling okay about that. All I have left from the MLM is a lot of unused brochures.

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

 Share

×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.