Tax write-offs...need your advice

[Watch_me_move]

Hello,

I'm a solo artist and recently, I started an independent label for the purpose

of tax write-offs. This will be my first year selling my Cd, Merchandise, etc.

Was looking for tips on how to organize this apsect of the buisness.

I'm new to this so any insight would be greatly appreciated. I know to keep

all my receipts. Is there anything else I have to include.

 

Thanx!

[doug osborne]

Nolo Press nolo.com has some great books about starting a small business, maximizing your tax deductions, etc.

 

If you are running your business as a sole proprietor, Quicken Home and Business can be just what you need to organize your finances, and they have a TurboTax Home and Business online that makes tax easy.

[jaxn slim]

Sounds like you are running it as a sole proprietorship, so you would just include all the revenues and expenses in your personal tax return.

 

However, you are only allowed to write off expenses if the purpose of your business is to make money. As a result, you will also have to report some sort of revenues to go against some of those expenses. You can still come out at a net loss, but in the (unlikely) event that you get audited, you will have to prove that it is not just a hobby.

[Watch_me_move]

Yes, I'm running it as a sole proprietorship (attained a D.B.A) for it. So, I gotta keep my receipts from all my expenses and also my yearly revenue.

Being that it's my first show, should I file my business taxes? Will I get any money back?

[doug osborne]

IANAL or a tax expert! And I don't know if you are even in the US or what state you are in.

 

As a sole proprietor, you are co-mingling your personal and business funds. Any business income will be taxable, and appropriate expenses can be deducted from your tax due. The IRS has publications that tell you all the details about hobby vs. business, deductions, etc.

[Instrospection]

I got back $6600 last year. Keep this in mind--your first year is gonna be a huge loss, but that's expected. You need equipment, start up capital (ad budgets, hiring staff, etc). Mind you, the way the industry is, i'd try to keep it to just the things that pertain to your business (and hiring staff is almost guaranteed to be a bad idea at this point), but you can even write off music magazines ("market research"). Even schooling, if you took a sound engineering course. That's all stuff that you need. I wrote off guitar amps, guitars, pedals, mics, consoles, pressing, ads, promos, etc....even buying cds that pertain to your genre ("market research"), you can write that off. The way I set up my business was as a personal studio/ label/ gear buying/ selling sort of thing, that way, it's all tied in together--because it is. I can't function without one of those facets, because i'd have to pay people, like producers (though I do get some help from professional recording studios and bigger name mastering engineers), session players (in which their fees would reflect them having gear and for their time), writers, arrangers, promo guys, etc. I'm losing money doing it this way, but if I had to pay all the people to do that, it would be astronomical, and as it is, I don't even get paid for my own time.

[BlueStrat]

 

Yes, I'm running it as a sole proprietorship (attained a D.B.A) for it. So, I gotta keep my receipts from all my expenses and also my yearly revenue. Being that it's my first show, should I file my business taxes? Will I get any money back?

 

 

 

You will file a Schedule C and a profit and loss statement in addition to your 1040.

The first thing, and I mean the VERY FIRST THING you should do is ask around for a good accountant and ask his advice.

 

You will get all kinds of advice here, some of it good, some of it not, and really, no one here can know all the details of your business and of your state laws.

[Vinni Smith]

Log down EVERY mile driven in your car or truck for that business. Keep meal tickets for all the times you eat and have to talk about your business. Remember to always list the people attending the meal and what you talked about exactly. AND enjoy all those new instruments you buy and write off to the business as well! ; ^ )

 

Vinni