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06-12-2010, 03:25 PM
| | Registered User | | Join Date: Jun 2009 Location: Twixt a rock and a hard place | | | What can be deducted on taxes?
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Hi there,
This year it looks like I will be getting a 1099 for the money I made as part of a band I am in. What kind of stuff should I be keeping records of for deducting at the end of this tax year? Thanks in advance! |
06-12-2010, 04:18 PM
|  | Registered User | | Join Date: May 2004 Location: Dallas, TX | | | 1) mileage to your gigs
2) unreimbursed meals
3) rehearsal expenses
This is a quick list.
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06-12-2010, 04:19 PM
|  | Registered User
Head Tinkerer, The Flufflab | | Join Date: Mar 2009 Location: California | | | Equipment purchases, but you need to take a look at "section 179" to avoid doing all the depreciation paperwork.
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06-12-2010, 04:21 PM
| | Registered User | | Join Date: Jun 2009 Location: Twixt a rock and a hard place | | | I will look up section 179 right now. Do rehearsal expenses include mileage? Can I write off my basement home studio as part of this? It's where I learn new tunes, etc. |
06-12-2010, 04:24 PM
| | Registered User
Head Tinkerer, The Flufflab | | Join Date: Mar 2009 Location: California | | | If you can show (to the IRS' satisfaction, if necessary) that the studio was part of the band work, then yes. If the studio expenses were incurred in a different year to the band income, then talk to a CPA - here is where you do need to start playing games with depreciation.
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06-12-2010, 04:29 PM
| | Registered User | | Join Date: Jun 2009 Location: Twixt a rock and a hard place | | | Okay read the short version of section 179 online. I just bought a used bass that it looks like I can claim. I do have a CPA and I will talk to him, but I wanted to hear from guys who actually really do this.
Do bass lessons, strings, etc. count as deductions?
I only use my basement right now for learning new tunes via internet or playing cd's on my computer. Recording is not part of this band's deal right now, so I am not sure if home studio counts. |
06-12-2010, 05:00 PM
| | Registered User | | Join Date: Jul 2006 Location: Grand Rapids MI | | Quote:
Originally Posted by Nemasis  1) mileage to your gigs
2) unreimbursed meals
3) rehearsal expenses
This is a quick list. | Mileage can only be deducted if you're going from one job location to another. If you are going straight from your regular job to the gig you can deduct it. If you are going straight from rehearsal to the gig, you can deduct it. If you are eating dinner, then leave for the gig, you cannot deduct it.
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06-12-2010, 09:22 PM
|  | Registered User | | Join Date: Jan 2002 Location: Michigan | | Quote:
Originally Posted by Nemasis 1) mileage to your gigs
2) unreimbursed meals
3) rehearsal expenses
This is a quick list. | Do you need receipts for meals? What about food you buy from a vendor at a festival? They typically don't give you a receipt.
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06-12-2010, 11:10 PM
| | Registered User | | Join Date: May 2004 Location: Dallas, TX | | | Receipts
Always get receipts if you can. If they are not available, I think IRS allows you some leeway as long as the amount is not too outrageous. You will have to check with them for the exact amount you can report without receipts.
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06-13-2010, 06:19 AM
|  | Registered User | | Join Date: Jul 2009 Location: Deep East Texas Piney Woods | | | Yep talk to your CPA. Deducting something for your basement - that's going to be tricky. From memory, something about does the public have outside access to your basement, i.e. is it just a part of your home or is it really set apart and a business location.
Mileage and direct expenses that you have because of the band seem to be OK, beyond that watch out.
Good luck.
Last edited by MalcolmAmos : 06-13-2010 at 06:23 AM.
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06-13-2010, 06:28 AM
| | Registered User | | Join Date: Jan 2007 Location: Belgium (Antwerp) | | Quote:
Originally Posted by MalcolmAmos Yep talk to your CPA. Deducting something for your basement - that's going to be tricky. From memory, something about does the public have outside access to your basement, i.e. is it just a part of your home or is it really set apart and a business location.
Mileage and direct expenses that you have because of the band seem to be OK, beyond that watch out.
Good luck. | you can rent your basement studio to the band, in which case it will be tax deductable (but this Belgian legislation, but my guess is that all direct band related expenses are tax deductable, as principle)
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06-13-2010, 08:53 AM
| | Registered User | | Join Date: Jun 2009 Location: Twixt a rock and a hard place | | | Great answers so far. Okay, so it seems like the basement studio thing is out. How about stuff like strings, lessons, bass books, etc.? |
06-13-2010, 11:27 AM
| | Registered User
Head Tinkerer, The Flufflab | | Join Date: Mar 2009 Location: California | | | Educational expenses (lessons, books) are generally deductible if business related so, yes, as long as you're confident that you can tell the IRS a believable story you can deduct them.
Strings also, as long as they went onto a bass you played for money or used to learn the songs/skills that earned money.
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06-13-2010, 11:30 AM
| | Registered User
Head Tinkerer, The Flufflab | | Join Date: Mar 2009 Location: California | | Quote:
Originally Posted by tycobb73 If you are eating dinner, then leave for the gig, you cannot deduct it. | Business journal entry 6/13/2010: Band meeting to discuss finances over dinner at my house. External catering provided for meeting room. (pizza delivery). Left meeting to travel to venue to perform.
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06-13-2010, 11:42 AM
| | Registered User
Head Tinkerer, The Flufflab | | Join Date: Mar 2009 Location: California | | | I'd also recommend looking into getting your basement studio set up as a home office. There's a lot of scope for deductions there - rent/mortgage interest, utilities, etc. Talk to your CPA though as that's something the IRS looks at very closely.
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06-13-2010, 11:53 AM
|  | Registered User | | Join Date: May 2006 Location: Buffalo, NY | | | RULE #1 -
Advice on the internetz....
May be good/true, may be misinformed/false/somebody voice their thoughts.
It's not a bad thing to ASK advice, it's a bad thing to accept what you hear/read as gospel w/o knowing it is fact and applies to your situation, or what's legal and 'correct' according to where you're operating and filing.
Listen to all the answers, these make for good questions when you consult a REAL tax professional and ask them "Hmmm.... I heard THIS, is that true or not?" |
06-13-2010, 11:56 AM
| | | | What about if you have children and have to pay a baby sitter while rehersing and/or gigging? I'm assuming this has to be deductible. |
06-13-2010, 12:01 PM
| | Registered User
Head Tinkerer, The Flufflab | | Join Date: Mar 2009 Location: California | | Quote:
Originally Posted by ric stave RULE #1 -
Advice on the internetz....
May be good/true, may be misinformed/false/somebody voice their thoughts.
It's not a bad thing to ASK advice, it's a bad thing to accept what you hear/read as gospel w/o knowing it is fact and applies to your situation, or what's legal and 'correct' according to where you're operating and filing.
Listen to all the answers, these make for good questions when you consult a REAL tax professional and ask them "Hmmm.... I heard THIS, is that true or not?" | +1 very very true. Write down the key points from this thread and take the list to your CPA. I'm someone who is happy to drift a little into the grey areas of "what you can get away with", double-check everything here with a pro.
And always remember, you can't deduct more than you earned!
(well, usually, anyway...)
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06-13-2010, 12:03 PM
|  | curiously looking back at what once was beautiful | | Join Date: Aug 2008 Location: Oregon | | I've been deducting music CDs and downloads for a long time. (I think I file it under miscellaneous and call it "audio source material".)
I'd welcome any pro advice on a better place to list it. But list it I will. (I do NOT purchase The Carpenters' Greatest Hits for personal enjoyment!!!!  )
For me, strings, 9V batteries, any essential expendables like that go under "supplies". There's a convenient "repairs" section for repair expenses. (I also consider upgrades as "repairs".)
I let TurboTax figure out depreciation on major purchases that I don't intend to sell.
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Last edited by Jefenator : 06-13-2010 at 12:08 PM.
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