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Dirty-South Blues Harp forum: wail on! > is there a CPA in the house?
is there a CPA in the house?
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eharp
828 posts
Oct 04, 2010
5:40 PM
i was just wondering- since we all got GAS and we all love to go attend seminars, some of us teach and some of us gig and get paid...
does anybody know what the requirements are for writing our "hobby" off for tax purposes?
do we need to earn "X" amount teaching to be able to business expense SPAH?
do we need to gig "Y" nights a month to write off harps?

i gotta believe somebody has checked into this already.
ness
299 posts
Oct 04, 2010
5:59 PM

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John
shanester
257 posts
Oct 04, 2010
6:14 PM
All you need to do is register a DBA (doing business as) with the State and open a checking account.

Then you should be able to write off expenses as a sole proprietorship.

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Shane

1shanester

"Keep it coming now, keep it coming now,
Don't stop it no don't stop it no no don't stop it no don't stop it no no..."

- KC and the Sunshine Band
Kyzer Sosa
818 posts
Oct 05, 2010
1:29 PM
you have a finite amount of time to do that, 5 years i believe, where you can show a loss and still claim a business. (for personal tax purposes) after that, the IRS will look much more closely at you goings on...
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Kyzer's Travels
Kyzer's Artwork
barbequebob
1285 posts
Oct 05, 2010
1:36 PM
Kyzer's got that right on the money. As a pro, you would file as being self employed. Anyone who is in any form of entertainment business, you are almost automatically gonna be in line to be audited and you better have all your records up to snuff in a big way. In the business cycle, the 1st 2 years usually tend to be losses, the the next 2 should breaking even and the 5th year, you should be turning a profit. As a musician or any other entertainer or artist, you need to get an accountant who specializes in the entertainment industry and not one of those bozoz working for Jackson Hewitt or H&R Block.
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Sincerely,
Barbeque Bob Maglinte
Boston, MA
http://www.barbequebob.com
CD available at http://www.cdbaby.com/cd/bbmaglinte
eharp
833 posts
Oct 06, 2010
4:27 PM
sorry.
i forgot to thank you guys.
not exactly what i wanted to hear. but neither is the phone ringing with an IRS agent on the other end.


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