How do you file

[TBurst Std]

Curious, for the pros here (IE: Not pro but claiming profit and loss on a career in music). How do you file? SP, S Corp. etc?
I filed as a S Corp a while ago. Getting ready to accelearte the deprecitation and collpase it next year. Dollars aren't just coming in as they where.

 

[Jusatele]

play for cash only, best part of not really being in a band but that stand in guy they call when they need a guitarist. Had a really good year last year the Xmas season I was out every weekend and the summer I was booked a lot also, but I do not touch money unless it is in Benjamins.
I can see if I was in a regular gigging band, but I try to keep Uncle Sam happy, and he is happiest when not trying to get into my back pocket. Just cost him to much in paper work as I see it, so I will save him the money.

 

[DangerousR6]

I grasp the handle firmly, and a light touch on the front and push forward with smooootth even strokes.... :toothy11:

 

[Tonar8352]

Alphabetically.

 

[Wyliee]

To give you a more serious answer (though I love our lunatics here!), I run everything under an LLC.  Since I work out of my house, it allows me to amortize portions of my mortgage, utilities, etc.... and provides for a separation between my personal property and company property.  Since I have clients that come to my house, I want to create a separation of assets in the freak event a customer would want to sue me.  Plus I can claim mileage and expenses.

 

[DangerousR6]

To give you a more serious answer (though I love our lunatics here!), I run everything under an LLC.  Since I work out of my house, it allows me to amortize portions of my mortgage, utilities, etc.... and provides for a separation between my personal property and company property.  Since I have clients that come to my house, I want to create a separation of assets in the freak event a customer would want to sue me.  Plus I can claim mileage and expenses.

Sue you for what.....playing your bass too loud... :laughing11:

 

[pabloman]

To give you a more serious answer (though I love our lunatics here!), I run everything under an LLC.  Since I work out of my house, it allows me to amortize portions of my mortgage, utilities, etc.... and provides for a separation between my personal property and company property.  Since I have clients that come to my house, I want to create a separation of assets in the freak event a customer would want to sue me.  Plus I can claim mileage and expenses.

So you work out of your home and claim mileage??!?! :dontknow: That's awesome ccasion14:

 

[DangerousR6]

To give you a more serious answer (though I love our lunatics here!), I run everything under an LLC.  Since I work out of my house, it allows me to amortize portions of my mortgage, utilities, etc.... and provides for a separation between my personal property and company property.  Since I have clients that come to my house, I want to create a separation of assets in the freak event a customer would want to sue me.  Plus I can claim mileage and expenses.

So you work out of your home and claim mileage??!?! :dontknow: That's awesome ccasion14:

So does my wife in here biz, she works outta the house, we get deductions for vehicle insurance, home owners insurance, mortgage interest....etc...etc....etc... :icon_thumright:

 

[bagman67]

Seems to me you can take deductions for your WARMOTH BUILDS, too.

 

[Steve_Karl]

For me ... technically it's called Sole Proprietor or Independent Contractor but just list your occupation as "Musician"
... and yes you can deduct tools off the trade.

I write them all off in one year on form 4562 Part 1 line 6 "Election to Expense".

 

[Super Turbo Deluxe Custom]

I paid taxes under my previous band the last 2 years.  It was setup by the lead singer as an LLC, so we got 1099s from him at the end of the year.  Certainly everything that was a check was reported and little bit of the cash.  Between mileage and receipts, I had more deductions than income from it.  When combined filing jointly with my wife, playing in the band actually put $7 more on our return;  WOW!  I'd agree cash only is always preferable, but many places just don't do that anymore and that can prevent playing at the "good" venues and bigger paying gigs.  $1200 split 3 ways for 2 hours work, that's usually a check.

 

[Jusatele]

I get cash because I am not a member of the band, just a stand in.
so the pay is less than 600 dollars and not reportable  :glasses9:

And some day I too am afraid someone will sue me for making there head snap when they heard one of my awesome solos, or is that I messed up some one elses awesome solo, oh well one of those two :toothy10: :toothy10: :toothy10:

rock on arty07:

 

[Wyliee]

To give you a more serious answer (though I love our lunatics here!), I run everything under an LLC.  Since I work out of my house, it allows me to amortize portions of my mortgage, utilities, etc.... and provides for a separation between my personal property and company property.  Since I have clients that come to my house, I want to create a separation of assets in the freak event a customer would want to sue me.  Plus I can claim mileage and expenses.

Sue you for what.....playing your bass too loud... :laughing11:

What happens if they slip and fall in my driveway..... or fall down the steps... or.....  Granted, I'm fairly selective with my customers, but as my customer base grows, I'm meeting more people that I don't know or only know through a reference.

As far as mileage goes, that would be milages to/from gigs and rehearsals.

 

[OzziePete]

Hmmm, while this is based upon US tax and legal issues, this talk has me thinking about my home recording studio here in Oz....... :sign13:  There may be some relevance here too, although because live in a Strata complex (read: condo complex for US) I would have to apply to the Body Corporate for approval to conduct a business from home and that may prove cumbersome as there are issues with noise etc to be addressed. Food for thought, thanx!  :icon_thumright:

 

[Super Turbo Deluxe Custom]

Even in Aus., some deed restrictions and HOAs may restrict businesses being run out of homes if it adds commercial traffic to a residential area.  Even if the neigbors never know or complain, the competiton might.  Deducting home space as business space is almost more trouble than it's worth.  Doing it legitimately would mean business use only. 

 

[Cagey]

Even in Aus., some deed restrictions and HOAs may restrict businesses being run out of homes if it adds commercial traffic to a residential area.  Even if the neigbors never know or complain, the competiton might.  Deducting home space as business space is almost more trouble than it's worth.  Doing it legitimately would mean business use only. 

I used to do that back when I was writing software professionally. But, that's an easy business to hide.

 

[Wyliee]

Even in Aus., some deed restrictions and HOAs may restrict businesses being run out of homes if it adds commercial traffic to a residential area.  Even if the neigbors never know or complain, the competiton might.  Deducting home space as business space is almost more trouble than it's worth.  Doing it legitimately would mean business use only. 

Correct on both accounts.  I have one room in the house dedicated solely to music.  We have a certified tax accountant/CPA handle our taxes to make sure nothing is missed and is on the up and up.

As far as HOA (or CC&Rs, community covenants and restrictions) goes, there's a bit of grey area.  After reviewing them extensively, we've concluded we are meeting both the spirit and intent of our bylaws.  We're solid.

 

[TBurst Std]

OzziePete, I listed that stuff as a business expense as well, Where it resides as not as important as its primary usage. Location only comes into play if I wanted to write off or assess a depreciation to my residense on the business itself.