Join Richard Stim for an in-depth discussion in this video Other expenses, part of Taxes and Accounting for Music.
- Here are some miscellaneous expenses…that can also be deducted.…Payments to professional organizations,…guilds or unions are deductible,…as are all business-related fees,…whether for accounting, booking, management,…promotion, legal, internet or registration fees,…for example, copyright and trademark registration fees.…You can also deduct office and music supplies.…You'll need receipts and proof of payment.…You may deduct the cost of concert tickets,…music downloads, and CDs,…provided you can justify these as necessary…for furthering your career.…
Obviously, some of these items may be purely…for personal use,…so only claim those expenses that can realistically serve…as career research.…Save your ticket stubs, receipts, and journal entries.…Keep in mind that this deduction only applies to you,…not your plus one.…The IRS permits you to deduct 50% of entertainment expenses…when you entertain someone for business purposes,…provided you jump through a few hoops.…In general, you need to be able to demonstrate…that the main purpose of the activity…
In this music business course, author Rich Stim covers the most important tax issues for musicians. He starts with the basics: determining if music is a hobby or a business for you and how that affects your deductions. He then discusses money and the sources that determine gross income. From there, he shows the items you can deduct from your gross income—mileage, studio spaces, touring expenses, and other miscellaneous deductions—that can add up to big savings. Next, he covers the different tax rules for individual musicians, bands, general partnerships, LLCs, and corporations, and explains how to get an Employer Identification Number (EIN) when you need one. Finally, Rich navigates through the tax forms, including Form 1040, Schedule A, Schedule C, Schedule SE, Schedule K-1 (Form 1065), Form 4562, Form 8829, and Form 2016, and provides advice on hiring a tax preparer or going the DIY route with tax software.
DISCLAIMER: This course is taught by an attorney (or other instructor) and addresses US law concepts that may not apply in all countries. Neither LinkedIn (including Lynda.com) nor the instructor represents you and they are not giving legal advice. The information conveyed through this course is akin to a college or law school course; it is not intended to give legal advice, but instead to communicate information to help viewers understand the basics of the topic presented. The views (and legal interpretations) presented in this course do not necessarily represent the views of LinkedIn or Lynda.com.
- Managing bookkeeping
- Counting income
- Claiming expenses and other deductions
- Understanding tax entities such as LLCs
- Getting an employer ID number
- Preparing and paying taxes