[Date Prev][Date Next]   [Thread Prev][Thread Next]   [Date Index][Thread Index][Author Index]

Re: Tax Strategies for LOOPERS

--- jimfowler <jimfowler@prodigy.net> wrote:
> how does one go about deducting music equipment
> purchases from your taxes?
> does music have to be your sole (or main) source of
> income...thus making it
> a business expense?
> -jim

It's been a while since I've done this stuff, but...

Income is a key word. You would need to be bringing
in some money related to the equipment in question
or at least have a business plan to show a reasonable
expectation of making a go of it.

Business is another key word. Most of us make music
for fun. Maybe we call it a hobby or artistic
expression. Neither one counts for much on a tax
return. Business intent could be demonstrated by
keeping the equipment in an area dedicated for
business use. A port-a-studio in your bedroom doesn't
cut it. Building a studio in your basement or back
yard might.

In any case, most of the equipment we use would be
depreciated over a number of years rather than
expensed all at once. In a business setting, guitar
strings might be expensed since they are "used up"
within a year. Your brand new Eventide is expected
to last a bit longer however.

I seem to to recall that there are some special rules
that apply to performing artists. There might even be
an IRS publication devoted to the topic.

I'm afraid that I dealt with more Amway salesmen than
musicians (shudder).



John Tidwell

Do you Yahoo!?
Yahoo! Tax Center - File online, calculators, forms, and more