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Originally Posted by trumpettrax Well, just wanted to get some opinions on starting a home based business. I was told that working out of your home as a freelancer and teaching you could write some things off on your taxes. I was told that any furniture you purchase i.e. music stands chairs etc for lessons could be written off and that purchases of instruments could be done also. Cell phone bills etc. Is this true? Does anyone know for sure, maybe you have already done this?
curious,
trax |
That is correct. But the deductions can only be made against payments that are not subject to witholding, i.e., when someone pays you directly. You have to declare the income too. Keep records. Other things you can deduct:tuxedos and their upkeep, mileage driving to gigs, CDs, sheet music, computers that you use to keep track of your business and store music and charts, part of your medical insurance if you pay for it yourself, and a home office deduction, which has been made easier to do the last couple years. If you have a home office you can deduct part of the rent or mortgage, property taxes, utilities and insurance. Consult a tax pro, especially one who specializes in working with musicians and knows the issues. Good luck! It's a crappy business.
Michael McLaughlin
"Madness is rare in individuals, but in groups, parties, nations and ages it is the rule."
Nietzsche