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1099-MISC

Discussion in 'Off Topic [BG]' started by twangchief, Mar 26, 2005.


  1. twangchief

    twangchief Supporting Member

    Oct 30, 2003
    Altoona, PA
    Ok...here's one I've never dealt with.

    My playing is just a hobby but I've got a 1099-MISC to report. If its just a hobby, is it self employment income?
     
  2. Jay

    Jay

    Oct 19, 2000
    Bidwell, OH
  3. Blackbird

    Blackbird Moderator Staff Member Supporting Member

    Mar 18, 2000
    California
    But the good news is you can deduct expenses, such as strings and lessons. Not to mention the mileage you put into your car to go to gigs and other related stuff. 37 cents a mile, I think.
     
  4. twangchief

    twangchief Supporting Member

    Oct 30, 2003
    Altoona, PA

    I've done that now but since ya end showing a loss for your 'self-employment', you end getting a larger refund. The IRS has got to love that.
     
  5. Blackbird

    Blackbird Moderator Staff Member Supporting Member

    Mar 18, 2000
    California
    Love got nuthin' to do with it. They get theirs, you get yours. They wrote the rules, not you. ;)
     
  6. Mike Dimin

    Mike Dimin

    Dec 11, 1999
    Clinician: EA, Zon, Boomerang, TI. Author "The Art of Solo Bass"
    If it is a hobby than you cannot deduct expenses. If it is a business, you can. If your business loses $ 3 out of 5 years, they will deem it a hooby and no longer allow the deductions for expenses.

    They will get thiers!

    Dimin
     
  7. Bryan R. Tyler

    Bryan R. Tyler TalkBass: Usurping My Practice Time Since 2002 Staff Member Administrator Gold Supporting Member

    May 3, 2002
    Connecticut
    I've had to file self-employed for years now because of my art. There are ways to still make deductions if you report losses for 3 out of 5 years, but that may depend on the sort of business you run. You can also break even-deduct yourself down to $0 and it won't count as a loss.
     
  8. Mike Dimin

    Mike Dimin

    Dec 11, 1999
    Clinician: EA, Zon, Boomerang, TI. Author "The Art of Solo Bass"
    That's because it is not :p

    and, of course, that is the goal
     
  9. RAM

    RAM

    May 10, 2000
    Chicago, IL
    This is where the IRS could easily step in and force you to prove it's a business in tax court.

    Just because they haven't audited you yet doesn't mean they won't. Be careful.
     
  10. Bryan R. Tyler

    Bryan R. Tyler TalkBass: Usurping My Practice Time Since 2002 Staff Member Administrator Gold Supporting Member

    May 3, 2002
    Connecticut
    With my business, it's pretty easy (and extremely common) for you to prove you're a working, but not profiting artist. I also have a steady income from social security, but still make enough in self-employment where I have to file as self-employed, so I have a way to fund my business (I live cheaply) and more than enough business dealings to show it's business. I haven't had to file losses three out of five years yet (filed a profit this year that I couldn't even deduct much of), but it's not uncommon for people in my field to do so.