Thursday, April 2, 2015
New York Times op-ed: How the Tax Code Hurts Artists, by Amy Sohn (author and television writer):
With tax day looming, you can practically hear the cries of creative professionals across the country. That’s because the tax code hits many right where it hurts, by penalizing them for the distinctive way they make money.
The biggest offender is still the alternative minimum tax, despite the American Taxpayer Relief Act of 2012, which brought long-overdue reform. Two provisions of the AMT hit a disproportionate number of actors, screenwriters and directors: In calculating it, taxpayers can’t deduct employee business expenses, nor can they deduct state, local and property taxes.
Finally, Congress should take a cue from countries like Sweden, Germany and the Netherlands, and allow income averaging for artists — which Congress got rid of in 1986 for everyone but farmers, fishermen and certain retirees.