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Old 05-12-2013, 02:13 AM
toddbishop toddbishop is offline
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Join Date: Feb 2010
Location: Portland, OR
Posts: 2,471
Default Re: Drums and American taxes

Follow DED's advice re: "stage" clothing-- that's kind of a classic red flag for getting audited. And contrary to your consultant's advice, you do not want to get audited, even if you come out a net winner. Otherwise, go nuts. And try to show at least a small profit most years-- if you show a loss for (I think) more than 2 out of 5 years, the IRS declares you a hobbyist and disallows your expenses. A couple of musicians in Minnesota are getting royally screwed by the state revenue people on that front right now. In the context of taxes, "hobbyist" just refers to whether or not you are profitable, not whether or not music is your main source of income-- of even a major one.

You do have to show a minimum amount of income-- $800/year, I think?-- to use a Schedule C, and deduct expenses.
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