| If you are a musician, you spend a lot of time and | | | | If you run everything as a business, you should be able |
| money working to perfect your talents. Wouldn't it be | | | | to deduct all ordinary and necessary expenses related |
| nice if you could get some of that money back on | | | | to that business from your income. Some ordinary and |
| your income tax return? Well, you probably can, even | | | | necessary expenses for a musician might be things |
| if your playing is just a hobby. | | | | like, instruments, equipment and gear, consumable |
| First, you have to determine if your playing qualifies as | | | | supplies like drum sticks, guitar strings, picks, sheet |
| a hobby or a business. The majority of tax deductions | | | | music, CD duplication, recording expenses, rehearsal |
| are going to come to those musicians who are earning | | | | hall rentals, website and email expenses, travel |
| a living through their talents. If you determine that your | | | | expenses, storage fees, instrument repair fees, cost of |
| playing is a hobby, you can only deduct what you | | | | clothes you perform in, attorney fees, manager fees, |
| earned from the hobby. Intuit offers good advice about | | | | agent fees, membership in professional organizations, |
| determining the difference between hobbies and | | | | unions, and associations, copyright and registration |
| businesses on their website. You might want to check | | | | fees, subscriptions to trade publications and magazines, |
| it out and see how the information applies to your | | | | any and all promotional expenses, and video and audio |
| circumstance. | | | | production expenses. |
| If you decide that your involvement in music constitutes | | | | This on top of all ordinary business expenses like a |
| a business, you need to be very precise about | | | | computer, Internet services, office equipment, printer, |
| documenting all the expenses that you will claim. The | | | | copier, fax machine, paper, pencils, pens, staplers, etc. |
| Internal Revenue Service has a penchant for people in | | | | If your business is strictly to perform, you might not be |
| the music business. They have made the public | | | | able to deduct home office expenses. If, however, part |
| statement that the music business presents unique | | | | of the principle operation of your business is to record |
| problems in an Internal Revenue Service audit. | | | | and sell music, home office expenses should be |
| It is important that from the moment you decide that | | | | deductible. In order to be precisely certain about which |
| your involvement in music is a business; you treat it as | | | | deductions may or may not be legitimate for your |
| such by keeping good records of incoming earnings | | | | circumstance, it is recommended that you contact a |
| and outgoing expenses. Incorporate yourself or your | | | | tax professional. Ask around, and find a tax |
| band. Get business cards, posters, promotional flyers, | | | | professional who specializes in preparing tax returns |
| etc. Join musicians unions or organizations. Copyright | | | | for musicians. |
| your original music with BMI or ASCAP. | | | | |
