Proposed tax cuts may end deductions for instruments

[erick]

Ok,we steer clear of politics on the cafe, but....

Comment removed. Yes, we really do ask you take politics elsewhere.

[f5loar]

If it passes you will have to look for those hidden tax loop holes. Some say there will be more, not less of those. Pretty sure if you own a golf coarse and buy the mandolin for use at the golf coarse, you will be able to write it off as there is a new inclusion for new golf club owners for deductions. Other ways to get around it is if you are a homeowner you can buy the mandolin with your equity line credit and still be able to take that deduction of the interest paid.

[Mark Gunter]

Erick, I found this article and read it first, I think it is worth linking to, as it has tips that may help someone if acted on this year and it doesn't have quite a volatile a headline: https://financeformusicians.com/musi...ax-deductions/

In addition, it appears to be the meat and potatoes article that the "slippeddisc" article drew from.

[bigskygirl]

The article Mark linked to explains this but generally only musicians who are employees would "lose" the deduction for unreimbursed business expenses, doubling the standard deduction probably makes up for some of it though it will for sure not keep up with inflation over time...

So, musicians set up a Schedule C and become an independent contractor...probably what most people do now anyway...and all the expenses associated with your "music" profession can be deducted. Also, keep in mind that many states actually require taxes to be filed and paid for income earned in their states so if one plays gigs across the country then you may need to file returns in multiple states - you'd have to exceed filing threshholds. If you earn money out of the country thats a whole 'nother situation.

I know this because I'm a CPA who has been preparing taxes for over 30 years and had many musicians and professional athletes as clients...with good record keeping it's not terribly complicated and for any taxes paid to other states one gets a credit on the home state return...for now anyway.

[Astro]

Yeah I doubt this has much of an impact to many full time "self employed" performing musicians. Sadly, teachers may be most effected. The performers I know basically have incomes near the poverty level and don't pay much if any taxes and a lot of what they make is unreported. Of course the performers I know are unknowns flying under the radar.

I do gig some but I dont count on the money as income. I have a standard job and I have never tried to write off my instruments.

What is a pain though is that more and more venues are requiring musicians fill out a w9 (or whatever form) so they can report it and write off your gig fee and if you make more than about 1200 a year that was reported then you'll have to report it and pay tax on it. First its a pain to keep track. Second, its a pain to report. Third, by the time you pay tax on the gig fee its not really worth the gig. Fourth and foremost, who in this day and age wants to give their personal information including social security number let alone real name and address to some bar hound thats been working at the dive for a week and will be working somewhere else next month? What garantee do you have that that fly by night spot wont sell your info even if they manage to stay in business for year. I dont give it. I either pass the check on to a musician who lives on the edge or just dont do the gig. Its just not worth the 5 dollars an hour (slight exageration?) you might get after taxes.

[MikeEdgerton]

Ok,we steer clear of politics on the cafe, but....

Yes we do.