Tax question

[channah]

I am a musician as well as a teacher. Most of my music is payed through cash from clubs. There are a few weddings, clubs, etc that pay by check. The band itself is INC. Do i need to claim all of those cash gigs? Also, what can I write off for expenses for that? Any help would be great.

[cercis]

Re: Tax question

I think this is one you need to ask a professional.

When you say "INC" do you mean incorporated? If so, then the band needs to file it's on tax return. And yes, all income must be claimed by someone.

For expenses, the standard deductions are: mileage, office supplies, and equipment. You might also have advertising, travel and costume fees. But, really you need to take your receipts to a qualified accountant and let them walk you through it at least once.

[mom-from-missouri]

Re: Tax question

yes you have to claim. for all you know, and auditor could have been at one of your gigs and be watching for the return. i have seen it happen to a local band here in town--

[PRICEPLUS]

Re: Tax question

Keep accurate records of income and expenses. If the IRS schedules a meeting with you it is best to have your records in order.

[mom-from-missouri]

Re: Tax question

Priceplus is right. I was audited once. I had luckly kept a sprial notebook, with all my records in diary form. each page had the date on top, with receipts taped in it, and a description of what I did--drove xx miles to get such and such for the office. the audtior loved it. one word of caution--DONT highlight receipts or your writing. After a bit of time, the highlight tends to make some inks disappear. I did have a few entries that were very hard to read, he had to hold it up with a light behind the page to read where I had highlighted. it was nothing fancy, no spreadsheet or softwear--just records in a $1.99 sprial notebook.

[cercis]

Re: Tax question

another tip to add to mom's - if you have a thermal receipt (like most gas receipts) then you need to make a photocopy of it. They will turn black within a year.

[debtfreeme]

Re: Tax question

And because copying that receipt is a business expense, you should be able to write that off to! (My sister can for her business) So keep those receipts as well. Do it once a month then you only have 12.

[mom-from-missouri]

Re: Tax question

another tip to add to mom's - if you have a thermal receipt (like most gas receipts) then you need to make a photocopy of it. They will turn black within a year.

I am so glad you said that!!! I know know what those black things are that I find every so often in the glove box, or under the seat!! I had no idea--I honestly thought something had burned!!

[cercis]

Re: Tax question

LOL Mom. They do look burned, don't they. I was fortunate enough to catch them in the process and in different stages. But I never even thought to photocopy them until I mentioned how much fun it will be if I ever get audited and someone said "copy them".

C