So .....now that tax day is passing .....

What is something professional musicians have learned about taxes and performing ?

Don M ? Donny ? UD ? others ? dano

Hide your cash.
(Not that I would ever do that personally.)
Seriously, probably the biggest cost of being self-employed is paying both sides of the Social Security. But, as I get older I start to appreciate what that will mean in a few more years.
There are ways to get around this, however, if you feel you do not need to build up your SS account. You can easily incorporate, and channel everything through the corporation. Only draw what you need to live on as salary, so you will only pay the Self-employment tax on that portion.
Also, you can pay your children to work as Roadies or Sound Techs and have them load and set up your gear. You have to give them money anyway, and by doing this it is a legal business expense and fully deductible.
I often find it advantageous to buy new gear because most everything can be written off in the year it is purchased. If you sell your old gear too soon though, it must be accounted for.
If you use your home office to make bookings, learn songs, or otherwise conduct business, you can deduct all or part of phone expense, computers, office supplies, etc. Be aware that home office deductions have traditionally been a red flag to the IRS though, so be sure everything is documented.
Costumes can be deducted, but generally not clothes that can also be worn outside the job.
A very important deduction is the use of your vehicle. There are a couple of different ways to show this, and I'm not a tax advisor, but check it out carefully. It may be better if the Corporation owns the vehicle, but either way, the mileage allowance is quite high now.
Just a few things that come to mind.
DonM

[This message has been edited by DonM (edited 04-15-2002).]

I just have one tip ........


Pay 'em !


(Pay it now, or pay MORE,later!)
Trust me on this one gang.
ouch........

Hello everybody,

Here is my situation. I have a full time job in different field. However, I have home studio that is utitilized at least 4 times a week on professional bases. I use my studio to do work for non-profit organizations for free who otherwise cannot afford professional studio. So most of my work is for free but of course I get donations every once a while and now I am planning to start produce and sell some albums. The expenses of the studio is increasing. I have other family members working in the studio and doing hard work for free. I am thinking of start paying them for it. The whole thing is net loss but I am happy with it because this is what I want to do and this is how I can help christian organizations.

I was wondering if it is possible to make the studio none for profit organization or even a business and get tax help with the increasing cost of it? Any advice about this?


Thanks