*The Commerce Journal>>>Canada Taxes

I am a self-employed jeweller. Am i eligible to claim my inventory as $0, like visual artists/writers?

I am in my first year of business. I'm not sure how to calculate the inventory section on my return. If I do have to submit an amount, do I include both the cost of raw materials(silver/gold), and the raw materials in whatever finished goods I still have? Or just my cost of finished goods (including material and labour costs.) I'm not sure. Any advice would be very appreciated. Thanks kindly.

It appears that you may not be eligible as a jewller to elect closing inventory as NIL. However, the visual artists and writers are specifically provided in the cdn income tax act under subsection 10(6) to have an election to value the inventory as NIL.

A "business that is an individual's artistic endeavour" is defined in subsection 10(8) to mean the business of creating paintings, prints, etchings, drawings, sculptures or similar works of art, where such works of art are created by the individual, but does not include a business of reproducing
works of art. For more information, see the current version of IT-504, Visual Artists and Writers.

Your closing inventory should include your closing supplies not sold or used, work in progress, and finished goods (including, material, labour and applicable overhead costs) .

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