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Old 05-12-2013, 06:16 PM
toddbishop toddbishop is offline
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Join Date: Feb 2010
Location: Portland, OR
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Default Re: Drums and American taxes

Quote:
Originally Posted by larryace View Post
I get W-2's from both my main bands so it all gets reported. I deduct gear, tolls, gas and parking. It all gets lumped in with my electrical business though, they don't have to be separate. Even if my musical expenses are more than my musical income, it gets mixed in with my "real" job stuff. I'll have a loss on the music side next tax year because of the the Guru's. It will serve to lower my net taxes because I will still show a profit from my electrical business.
Doesn't being a W2 employee eliminate most of your deductions, though? They are for business expenses, and a W2 employee is not considered to be "in business." It sounds like you're not declaring any Schedule C music income, and are putting your music expenses, and any non-W2 music income, under your electrical business's Sch. C? If I'm following you correctly, that seems like it would be trouble for you if you ever get audited.

Quote:
Originally Posted by Midnite Zephyr View Post
Ya, the last thing I wanna do is get into trouble with the IRS, but things like rent, gas, expenses on the road, etc. These are all legitimate deductions. Not so much the gas it takes to get to the studio and back home,but the gas it takes to go from the studio to the gig and back - that should be deductible.
You generally don't deduct the actual fuel cost, you deduct a standard rate for all the miles you travel for anything music related-- going to gigs, going to rehearsals, to the studio, to the record store, drum shop, or Staples or wherever for office supplies, etc, etc.
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