Discuss the tax treatment of amounts received by an artist or writer that are to be used in the production of a literary, dramatic, musical, or artistic work, commonly referred to as an art production grant.

Know the tax incentives available to artists and writers who make certain donations, including the special tax incentive for gifts of works of art created by visual artists.

Determine deductions that are not allowable because they are either capital expenditures or they are personal or living expenses.