Resources:
- Business Use of your Car: Mileage
- Illinois Department of Revenue: Taxes at Fairs, Festivals, Flea Markets, and Craft Shows
Why YOU Should Care:
If you are selling your products at a fair or show, be sure you consider all available deductions. Additionally, you need to be aware of certain sales tax considerations.
In Chicago, every weekend in the Summer there’s an art show or craft fair to explore.
Deductions
Merchants selling products at theses fairs and shows should be sure to consider all relevant tax deductions.
- If you drive to the craft fair, you may qualify for the mileage deduction, so be sure to keep track of the distances traveled.
- Did you pay fees to get a spot at the fair (sometimes called “booth fees”)? Those are deductible.
Sales Taxes
While rules vary by state, most require you to collect sales tax when you visit for a craft fair. Some counties also collect sales taxes and require you to follow suit while you are present. Additionally, you may be required to issue receipts for the goods you sell with the sales tax amount listed as a separate line item. Check with the state’s department of revenue for exact guidance.
In Illinois, where I live, craft fair merchants are required to both register with the department of revenue and collect and remit sales tax for the event.
