So, this year I’ve “published” and sold one of my compositions online.  Made more money than it cost me in real dollars (meaning, exclusive of my time, so far...)

The Big Band for which I play Alto Sax has been selected to be the feature band at this year’s Instrumental Encore conference in Arlington, TX.  That’s going to be exciting, yet daunting, considering the composers of 90% of our repertoire are going to be there to hear us…

We’ve also been asked to open for a fairly well-known band at a concert in May.  I hesitate to post their name because they haven’t begun publicizing the event yet…

What can come next?  Actually getting PAID to perform?  Naahhhhh…

Congrats! Now remember to deduct your home studio as a business expense....

Good to hear that things are developing well for you!

Now remember to deduct your home studio as a business expense....

Does anyone actually do that???  I tried doing that when I ran a small web-based business out of my home.  The miles of paperwork and depreciation calculations and all that stuff drove me nuts.  I decided it wasn’t worth the effort.  :)

Hey, Mo-Z, I’m going to be in your neck of the woods tonight through this weekend, attending one of my kids’ Marine Corp Graduation on Friday night.  Here I was looking forward to some nice SoCal weather, and it’s going to be cool & drizzly there while it’s supposed to be 85 and sunny here.  I feel ripped off.  :)

“Does anyone actually do that???  I tried doing that when I ran a small web-based business out of my home.  The miles of paperwork and depreciation calculations and all that stuff drove me nuts.  I decided it wasn’t worth the effort.  :)”

Get a good accountant. It’s worth the effort IMHO. Unless of course you feel it’s your civic duty to help fund the economic stimulus plan ;)

Bob

Or the cost of the good accountant is greater than the deduction (or your combined deductions don’t exceed the standard deduction)--and you’d still have to feed the good accountant all the raw data.

TonyPhillips - 04 March 2009 11:32 AM

Now remember to deduct your home studio as a business expense....

Does anyone actually do that???  I tried doing that when I ran a small web-based business out of my home.  The miles of paperwork and depreciation calculations and all that stuff drove me nuts.  I decided it wasn’t worth the effort.  :)

Hey, Mo-Z, I’m going to be in your neck of the woods tonight through this weekend, attending one of my kids’ Marine Corp Graduation on Friday night.  Here I was looking forward to some nice SoCal weather, and it’s going to be cool & drizzly there while it’s supposed to be 85 and sunny here.  I feel ripped off.  :)

They say it never rains in southern california. ;)
Too bad I don’t have a club gig I could invite you to; I’m off friday, a casual on saturday, and church gig and rehearsals on sunday.  If you like southern food, I suggest you check out my buddy Reggie Smith @ Magnolias (Euclid near trolley station) saturday night from 6-9pm. He’s a great saxophonist and one of my regular gigs, but my sub will be there saturday night instead.

To Scotch’s comment:
“Or the cost of the good accountant is greater than the deduction (or your combined deductions don’t exceed the standard deduction)”

Business deductions have nothing whatsoever to do with standard deductions or itemized deductions. Bus ded’s are totally independent from personal deductions.

Please refrain from giving bogus tax advice.

Business deductions offset business income (which is taxed at 15.3%) before income tax is even calculated.  This is referred to as self-employment tax.

The net business profit (or loss) becomes part of adjusted gross income...again, without consideration to itemized deductions.

Please remember this....generally, all investment in home studio gear and/or any gear used for business in 2008 is fully deductible in the first year up to $250,000.  Any unused portion is carried forward to offset future income......No depreciation need be calculated.

Bob is correct, find and utilize a good CPA (not just an accountant)....big difference!

Fair and balanced and completely unbiased, eh? (I should think whether it has to do with personal income deductions would rather depend on how you approach it. In any case, I don’t see that I’ve presumed to “[give]...tax advice”. The question, rather, is whether it’s worth hiring an accountant--CPA or other. The accountant’s own opinion as to whether he should be hired is naturally suspect--especially when the accountant refuses to acknowledge this.)

Congratulations TonyPhillips on “publishing” and selling one of your compositions online.
Keep on keeping on and maybe you will start getting paid for gigs ....Lol
Peace & blessings.

Nah, I forwent (is that a word?) the deduction in favor of Rapid Filing and a refund in my account 6 days later…

Incidentally, Mo-Z, it didn’t rain in SoCal while we were there, but it sure was cold! 

I had an awesome time, though… I rented a Cessna 172 and an instructor, both from the Armed Forces Aero Club, for the afternoon on Thursday and went flying out of Montgomery Field.  Took off out over Mt. Solidad, went feet wet, then north to Carlsbad, then U-Turned and flew south over San Diego Int’l., Coronodo North Island NAS, and further south to a stones throw from Tijuana (landed at Brown 4 times) then back into Montgomery after dark.  That was about the most fun I’ve had as a pilot in the last 3 or 4 years; probably because that’s the first time I’ve flown outside of a 300 mile radius of my home base here in Dallas…

The USMC knows how the throw a heck of a shindig for the families of graduating recruits… We walked the Recruit Depot back and forth and probably put five miles on our shoes on Thursday and Friday…

Unfortunately, wasn’t able to get out to see your pal, but we did get some great mexican food out in La Mesa Friday night.

Thanks for the suggestion, though!