Join Richard Stim for an in-depth discussion in this video Travel and meals, part of Music Taxes and Accounting.
- If you travel for your music business,…you can deduct your unreimbursed airfare,…hotel bills, car rentals, taxis,…laundry, tips, cargo costs,…and 50% of meal expenses.…If you plan your trip right,…you can even mix business with pleasure…and still get a deduction for your airfare.…If you travel within the United States,…you can deduct a travel expense…if it's primarily for music business…and you travel outside your city limits.…
For your trip to be deductible,…you must spend more than half of your time…on activities that can reasonably be expected…to help advance your career.…For touring musicians,…this includes time spent traveling,…sound checking and performing.…You don't have to travel any set distance…to get a travel expense deduction.…But you must travel outside the general area…where your home is located.…You can't take this deduction…if you just spend the night in a motel…across town.…
Also for the purpose of claiming the meal deductions,…you must stay away overnight or at least…long enough to require a stop for sleep or rest.…
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