Originally Posted by larryace
I own an electrical contracting company. My accountant wife advised me to report all my drumming income, as well as all my drumming expenses, included along with my electrical business income and deduction. Just because my business is named Ace Electric, there's nothing that doesn't say I can't provide electric and backbeat services.
What I need to find out from her is...do you need to start a business (eg joes drumming for instance) to legally be able to make these deductions. I'm thinking you might. If you work for McDonalds only, and claim drumming expenses...not sure if that is allowed. It may be, I'll find out and post what my wife says.
Even back in the late 90's when being a drummer in a band was my entire life, I was not required to declare myself a business. Under occupation, I just listed "musician."
The one area where I did run into a head ache was I filed as a musician on my state and federal taxes for years. The City caught wind of this, and came after me for city business taxes. However, most night clubs in L.A. are technically in a different city, and the recording studio we used was outside city limits, and the band PO box was in a 3rd city, so I put this all in a letter, and they stopped coming after me.
(keep in mind, Los Angeles county has 87 separate cities outside of the City of Los Angeles).
Humm...I did declare a chunk of music income last year, I might get another letter soon.