My husband is a tattoo artist and makes 60% off each tattoo and the shop takes 40% of that, can we deduct the 40%?

Forum|Forum|7 years ago
June 1, 2019
15 replies
98 views

No text available

MichaelL1

Level 15

If he reports the 100% of the income then the shop charge of 40% is a deduction.

If he reports only the 60% he gets, then the 40% is not a deduction (as it was not part of income).

pbj123

Level 2

I have a question Michael. We are in the same boat here, but the boss buys some supplies. Can we still deduct 40% (or any %)? I keep running into answers ranging from maybe yes to mostly no. Since we can't account for the cost of supplies.

DaveF1006

Level 15

You would only claim the supplies you purchase as an expense. Your boss will declare his own expenses he paid for out of his pocket on his own return. You will not report the money he spent anywhere in your return.because the supplies he purchased are accounted for in his 60% cut.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

pbj123

Level 2

Can he claim only the 60% of income? To account for the 40% he never sees?

DavidD66

Level 15

If he only gets 60%, he should only claim that 60% as income. If he claims the entire 100%, then he most definitely should deduct the 40% taken by the shop.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"