U.S.A. Tax Deductions for Gear???

JazzDawg

In preface to this question, I have a Consulting business, and am able to deduct certain items used in conduct of my business. This allows me to purchase equipment and at tax time recoup some of the expenses.

I'm wondering if any of you 'professional' GJ players out there in the U.S.A. are able to do something like that with the gear you buy? I'm looking at what I've spent on items in the last year, and it's amazing how quickly it adds up. I'm seriously thinking of getting my musicians union card again, and becoming a 'pro' player again, hoping that getting some gigs that pay, and having this type of expense offset would work out.

Appreciate any info or advice.

Jack

I'm self-employed, so tax season is always fun for me. But yes, I claimed quite a bit, and it was worth the small amount of extra time it took...and if it matters, I'm not part of the union. I doubt you could make it happen year after year (unless you're turning a profit as a musician) but it's worth looking into.

best,
Jack

marciero

To answer your question-Yes, absolutely- It's only fair to claim that stuff when you are paying taxes on the income. I took the easy route and use turbo tax or something like that, and do sole proprietorship. You have a choice of amortizing the deduction for a given piece or taking one lump deduction, and you can claim gear you bought in years prior to the tax year. I write off all those expenses, including professional development stuff like books, cds, I even wrote off Django in June. It passes the straight-face test, in my opinion. Don't forget to claim mileage, including to and from rehearsals, though I suppose as a consultant you are hip to that. Also, if you give lessons at home you can probably claim part of mortgage/rent. Again, you would know about that.

MIke

JazzDawg

Jack and Mike, thanks for the responses. I see there is little difference from what my wife and I are doing with our businesses. Although, in truth, I've not actually pursued my consultants business very much, as my time is pretty well consumed by my day job. Started out pretty well, but as time wore on, just didn't have the time to expand it very much.

My wife, on the other hand, is a working fine artist, and we do take many of the same types of deductions that a musician would, which is why I'm probably going to pursue that course - it's much more to my liking than working with computer information systems. Although, I do remember how working with club owners was a drag, and booking agents made my skin crawl. However, the time playing was the best. I was just too young and dumb to keep track of things then.

I did manage to find some interesting info for those of a similar mind. Food for thought, if you are getting to the point where you have the opportunity to make money by playing music, and would like to recoup some of the expenses like that new Hahl guitar, CDs, DVDs, books, subscriptions, travel expenses, and such. Take a read of this document, 'Top Ten Tax Tips for Musicians', found on this page - http://www.peterirvinelaw.com/articles.htm

It's never too early in your music career to get this going, and I can tell you the earlier you do take these advantages the better. ;-)