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Tara Carter | Episode 588
Tara Carter is a ceramic artist living in Telluride, Colorado. Tara earned her BA in Ceramics and MBA from Otterbein University in her hometown of Columbus, Ohio. Since graduating in 2011, Tara has been teaching ceramics classes, developing her own work by attending a variety of workshops, and exhibiting her wares.
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In regards to your personal and business (even if your business is just a side hustle), does having separate bank accounts make it easier at tax time?
This is interesting because this is the first year that I’ll actually have my separate business account when taxes come around. I think in the long term it will make it a lot easier for me. At this current moment I’m not making enough from pottery for it to make a real difference for me, other than the fact that I have the ability to look at what I’ve done and what I’ve taken in and put out just in ceramics. That is really useful for me to know, but… we’ll find out come April.
Does this also help you keep track of deductions and expenses by keeping them separate?
Yes! Absolutely. Deductions are going to be something that will be much more important for me this time around. When I work for a non-profit, my taxes are kind of fun to do because I get this nice little refund, and isn’t that really special. But now that I have this business that I am running, I am going to have to pay those taxes at the year end. So deductions all the sudden become much more important for me. So being able to see just how much I spent on that, and being able to justify buying some of these more expensive tools because I know I can use it as a deduction, all the sudden that makes a lot more sense to me. So for sure, deductions are a big consideration for me to make. Maybe I should go buy some more tools now.
Does that mean when you buy ceramics for your pottery collection for yourself, can you apply that then as research and thus a deduction?
Oh yeah! I’ll argue that all day long. One thing I’ve really been getting into lately are handles. On my pieces all the handles that I make are pinched and by that building method they are not quite as comfortable to hold I’ve noticed. So all the sudden the silhouette of the shape I am making on the cup itself is massively important. I don’t really get to use my pottery that much- I make and photograph it and then it is sold. So having the morning coffee when I can feel how a cup feels and functions… I won’t get that if I don’t buy other people’s pottery. So as far as justifying that, absolutely! It is research and development.
Does separating accounts help to elevate your work to making it feel like it is more than just a hobby?
Definitely. I think that is the hardest thing for a lot of people that are in that in-between phase of should I devote more time to pottery in whatever facet they can. And it makes it more tangible- I can actually see the money that is coming in from selling my work. There is a level of confidence that comes in from being able to look at my account and see those numbers pile up, which is great. But more practically, this allows me to have a better sense of what I am actually doing with my time. When I see that my account is growing based off the time that I spent making, all the sudden I can justify spending more time making where before it felt like I was just kind of playing around. Now this contributes to my lifestyle.
Does having that dedicated account also make you feel and look more professional?
I think so. There are a number of things that weigh into that more. I just created my website this year- that was a real learning curve because I created it myself and didn’t hire out. Just going through that practice, not only did I see that I have work that is worthy of being on a website, but I also have something to give to anyone that is interested.
Does having the separate bank account help protect you from an audit?
I would think so because now I have a real concrete paper trail for what I am spending. I don’t know how organized other people are, but for me I am not the type of person to keep files and save my recites… So when it comes time to deduct my tools, I have a paper trail with my account and I can actually look those up. So if I do get audited, I have that option to look things up.
What kind of tools do you use to track your business account?
I have an app through my bank account that shows all of my expenses, what’s coming in, and going out on my phone. Beyond that I have Quickbooks that I use.
Book
Eating Animals by Jonathan Safran Foer
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Instagram: @youpinchityoupotit