If you're claiming income from gigs, make sure that you
have the latest "what's acceptable" and get your forms
ready. Same with being self-employed.

Here's a good template that might help out:
http://www.musicbizacademy.com/knab/art ... axtips.htm

_________________
Being able to play and enjoy music is a gift that's often taken for granted.

Don't leave home without it!

My tax person told me two years ago to drop my BAND as a part of my taxes. I was making good money, but always spending more than I took in, let alone mileage and other expenses. She told me if it was never going to be a real money maker that the IRS didn't like hearing about it, to just consider it a hobby and let it go - but to go ahead and keep track of expenditures and mileage for a couple of years, just in case...

_________________
Dennis in CR
Rockin' since 1963

Check out Attorney Richard Stim's book on Music Law.

http://www.nolo.com

There is a difference between an entertainment attorney and tax person.

ISBN 9781413310566

If you're selling music (i.e. songs, jingles, game soundtracks) it might result in more
of a difference than just gigging?

_________________
Being able to play and enjoy music is a gift that's often taken for granted.

Don't leave home without it!

Since I am still working full-time at a real job and not supporting myself with my music, I think my tax person (fully tax-accredited CPA) is qualified to give me advice. I also let my woodworking business slip off the returns two years ago, so it's just me and my real job now - all the rest is just hobbies.

Someday soon it will be me, Social Security, eBay and music. I'm ready!

_________________
Dennis in CR
Rockin' since 1963

About 7 years ago it was getting to the point around here where cash gigs were going bye bye and owners/people with the checkbook wanted a soc security number before paying us. So we incorporated the band with each of the 4 of us as "principals" and now our group has it's own tax number that we give out for gigs.

The singer and I live 1/2 hour away so we keep detailed logs of our mileage to practice each week, plus all mileage related to gigs. Then every receipt during the year for strings, amps, related gear, and the monthly elec bill for our practice space all get turned in at year end. Our guitarist is a lawyer and drummer is a dentist and they both use the same accountant for their businesses, he is the one that does our tax stuff for the band at a good rate. As a business we show a modest profit each year and pay a small amount of tax, but it all goes agains the band and not one individual's income.

We have business cards, website, contracts, checking acct all tied to the band to show it's a legit business. Sucks to have to play businessman but that's the reality of it.

In reality, when there is money involved, it is indeed a business, IMO.

I've been fortunate to have a couple of jingles and game soundtracks
for good clients. Let's face it, everything depreciates, but there is so
much more that can be included and expensed also.
Look at the Cartoon Networks blockbuster gaming series "FusionFall" which
is viral here in America with the 8 to 13 year old crowd. There are many ways
to make money with music, just make sure you channel it in all directions.

_________________
Being able to play and enjoy music is a gift that's often taken for granted.

Don't leave home without it!

I know I'm an ocean away - but the principle's the same.

I've been putting off getting my paperwork in order all autumn. A few weeks ago my accountant told me; "It CAN'T wait any longer!" Pull your thumb out time.

Three days of total misery, the floor covered in papers, endless journeys around the house looking for missing invoices and such. How can this be so-o-o-o-o bad???

And that's just getting the numbers ready for the guy who does the numbers - before sending them off to the other people who do the numbers.

Still: now another year of putting my head in the sand and not thinking about it (till it all has to be done again).

Cheers - C

_________________