Is Being an Artist Considered a Career or a Hobby?

Art transcends the borders of traditional professions, extending into a multifaceted world that includes fine artists, illustrators, designers, art educators, and more. The field of art has evolved, blurring the lines between creative passion and professional pursuit. In today's landscape, art is not merely a hobby but a business—a career built on creativity, hustle, and determination.

Artists as Business Owners

For many hobby artists, the transition to a professional artist involves embracing the business side of art. As soon as one starts selling their artwork, they cross into the realm of business. This means acquiring a local business license, keeping meticulous records, and reporting income and expenses. This is especially true for those participating in art markets, art fairs, and outdoor exhibitions. The business license requirement is a necessity for selling crafts and art, even for those just testing the waters.

Street artists, too, must obtain licenses to sell their work. This ensures compliance with local regulations and sets a professional standard. Even those who experiment initially and later decide to continue selling their art may only do so with the proper license in place. This underscores the importance of understanding the legal and financial aspects of running a creative business.

The Intersection of Hobby and Profession

However, it is important to note that for many artists, art remains a profound hobby. Artistic pursuits can provide immense joy, fulfillment, and a sense of community without necessarily leading to a full-time career. For these artists, the act of creating is its own reward. But even as a hobby, art can generate income, which, for tax purposes, changes its classification.

The United States Internal Revenue Service (IRS) plays a crucial role in determining when art becomes a profession. According to IRS Tax Tip 2019-85, art is considered a profession when there is income from sales. If income is received but the activity is not pursued for profit, the associated expenses may be considered miscellaneous itemized deductions. However, income received must still be reported on the tax return.

Tax Considerations: A Lifeline for Artists

Tax implications are a significant factor in the business of art. Artists must consider several factors to determine whether their activity is a business or a hobby:

Is the activity carried out to produce income or is it for personal pleasure? Does the artist have a profit and loss history? Do they treat the activity in a similar manner as a business? Does the artist depend on the activity for income? Does the taxpayer hold the taxpayer in Switzerland for the art activity? Is the activity an eleemosynary activity? Does the taxpayer engage in the activity full time or as a sideline? Does the taxpayer make a normal profit? Are the taxpayer's losses due to circumstances beyond the taxpayer's control? Does the taxpayer or any other individual realize profit from similar activities in the past or expect to in the future?

By understanding these factors, artists can better navigate the complex world of art as both a creative passion and a business entity. This understanding helps in making informed decisions about tax planning, financial management, and business growth.

The Transformative Power of Art

Regardless of whether art is a career or a hobby, it has the transformative power to enrich lives. Art brings joy, sparks creativity, and fosters community. For those who choose to turn it into a career, it is a journey filled with challenges and rewards. For those who enjoy it as a hobby, it is a priceless source of personal fulfillment.

Art as a business, art as a career, or art as a hobby, it all begins with passion and the drive to express oneself. Whether you are creating to earn a living or to enrich your life, art remains a meaningful and profound pursuit. As the lines between the personal and the professional continue to blur, the essence of art remains constant—a reflection of the human spirit and its infinite capacity for creativity.