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Taxes

Discussion in 'Off Topic [BG]' started by Steve S, Mar 19, 2003.


  1. Steve S

    Steve S

    Jul 26, 2000
    I've been working on my income tax for the past year and found a bunch of receipts for bass purchases. We get paid in cash for every gig....is there a way that I can claim any of my music expenses on my income tax?
     
  2. Taylor Livingston

    Taylor Livingston Supporting Member Commercial User

    Dec 25, 2002
    Louisiana, US
    Owner, Iron Ether Electronics
    Technically, music purchases are a business expense for a band/performer. You could work out some kind of loophole with that. But then, I suppose you'd be taxed as self-employed... well, I don't know. This should probably go in OT/Misc.
     
  3. pkr2

    pkr2

    Apr 28, 2000
    coastal N.C.
    If your music money was reported as income you can deduct your expenses within certain limits.

    You need to discuss with your accountant or income tax preparer the exact limits that apply to you.

    I've never reported anything I made from playing music because over all, I never made a profit anyway. I'm sure that ,technically, I was in violation but, oh well.

    Why is this in this forum?
     
  4. john turner

    john turner You don't want to do that. Trust me. Staff Member Administrator

    Mar 14, 2000
    atlanta ga
    this does not belong in the luthiers forum - i'll move it up to bg off topic right now.
     
  5. Taylor Livingston

    Taylor Livingston Supporting Member Commercial User

    Dec 25, 2002
    Louisiana, US
    Owner, Iron Ether Electronics
    Why are there separate BG and DB Off-Topic forums? Is it so those smartypants doublebass players don't have to mingle with the likes of us bass guitar-playing ingrates? This segregation needs to stop. Before you know it they'll have separate sections in the music store...
     
  6. john turner

    john turner You don't want to do that. Trust me. Staff Member Administrator

    Mar 14, 2000
    atlanta ga
    yeah, pretty much. :D
     
  7. RAM

    RAM

    May 10, 2000
    Chicago, IL
    Okay, the accountant is back in the house.:eek:

    There are many rules regarding this, and my first precursor is that your individual circumstances may differ. I am not offering anyone advice, just posting general guidelines that you should consider when discussing with a tax preparer or using a tax-prep tool such as Turbo Tax.

    First of all, any income you receive as a bass player (or other musician) should first be categorized. Are you doing this for a living and as your main job? Or, are you doing this as a side job or hobby?

    If you're doing this as your main job, get a CPA. You've got more freedom to declare expenses against your income.

    If you're doing this as your hobby, you can generally deduct hobby expenses up to the limit of your hobby income. For example, if you earn $5,000 in a single year from gigging and you incur $6,000 of expenses, including depreciation of your bass, transportation expenses, certain meals, etc, you're only allowed to declare the first $5,000 of those expenses.

    Two things I need to mention right now: First, that leftover $1,000 MIGHT be eligible for carry-forward or carry-back rules which you need to discuss with a CPA. What a carry-forward or carry-back rule is, is the ability to carry the leftover expense forward to the next year or back to a previous year if you'd like to restate a prior year's income. It could help you get an additional refund from last year! Second, the IRS is likely to scrutinize your declarations on hobby income as hobby income tends to raise red flags. Feel free to declare all of your expenses, as there's no law that says you have to be OVERLY conservative. Just don't BS it.

    Furthermore, different states have different laws, 49 of which I'm not familiar with (although 6 of them don't tax income).

    I hope this helps.:D
     
  8. Brad Johnson

    Brad Johnson Commercial User

    Mar 8, 2000
    Gaithersburg, Md
    Boom Bass Cabinets, DR strings
    My music expenses usually usually negate my earnings. I'm happy with breaking even.


    YMMV
     
  9. RAM

    RAM

    May 10, 2000
    Chicago, IL
    Ditto.:D
     
  10. Brad Johnson

    Brad Johnson Commercial User

    Mar 8, 2000
    Gaithersburg, Md
    Boom Bass Cabinets, DR strings
    Why why did I write usuaklly twice?
    :rolleyes:
     
  11. RAM

    RAM

    May 10, 2000
    Chicago, IL
    I don't know...why didn't you spell it right, once?:p
     
  12. Mike Money

    Mike Money Banned

    Mar 18, 2003
    Bakersfield California
    Avatar Speakers Endorsing Hooligan
    There is no law requiring you to pay taxes.

    Don't pay them. Spend it all on gear.
     
  13. Brad Johnson

    Brad Johnson Commercial User

    Mar 8, 2000
    Gaithersburg, Md
    Boom Bass Cabinets, DR strings
    Cool. When was visiting day, again?
     
  14. Brad Johnson

    Brad Johnson Commercial User

    Mar 8, 2000
    Gaithersburg, Md
    Boom Bass Cabinets, DR strings
    Everyone's a schoolmarm;)
     
  15. RAM

    RAM

    May 10, 2000
    Chicago, IL
    :DLOL
     
  16. RAM

    RAM

    May 10, 2000
    Chicago, IL
    Uh...okay.:rolleyes: