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Originally Posted by MNAirHead  Either receive a 1099 or create a 1099 misc..
You can deduct real expenses.. mileage.. postage... gifts.. consumables (strings etc).. Have your band create a "uniform" this becomes deductable (specific shirts and pants that match).. if you take lessons they also become deductable. |
I believe negative on the uniforms. IRS has become much more stringent on clothing allowances. It has to be so outlandish that you can't wear it in everyday use. Matching shirts and pants don't count. Not a lawyer, but I would verify with someone who knows before trying that.
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You can't push the "hobby deductions" (like demonstrate a loss and deduct it from normal income).. deducting your new botique bass may push it (they'd claim you'd buy one anyway).. IF you and your guitar player bought matching guitars and ONLY played them for the band, this could argue for a "uniform"
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If you make a profit often enough, its a business, and the botique bass is aok whether you'd buy it anyway or not. If you don't make profit often enough, you are correct, as a hobby, its questionable.
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Our band wears no holes jeans, white shirts - no stains (new on a schedule)... has a string changing schedule and gives members memos to go to lessons... part of our uniform are tobacco sunburst guitars with rosewood fingerboards. I took a $120 deduction for a bass that meet this criteria - when called to question, I sent the IRS a listing of my hobby gear with pix of the band. When you sell this guitar it is considered miscellaneous income.
When you view pix of our band on different occassions, it's very clear that we're consistent... our "hobby" gear stays at a different physical location.
The key is to keep real honest records and write stuff down (and don't try anything shady)
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+1000 on the records and not trying anything shady. I would have thought the guitars were ok because of something other than the "uniform" angle. And would be careful of deducting the clothing as "uniforms". Never heard of the "hobby gear" vs "pro gear" angle, I'd think they're all musical equipment for the business or not. but not familiar with hobby rules, I've always made enough profit to be a business.
Lessons are part of professional training, should be fine. (if you're a business, not a hobby). I've heard people claim cd's, records, concert tickets as training, but never been brave enough to do so. Not saving enough money to risk an audit.
Randy
