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I'm a musician -- drummer specifically. I just filed my

I'm a musician -- drummer...
I'm a musician -- drummer specifically. I just filed my taxes today, but there were certain things I thought I could write off, but was told they weren't sure about it.
In the past, I've had professors tell me you can write off equipment, miles on your car/gas, food expenses when gigging, or any rentals that I make whether it's a space to play music in, or more equipment.
I was just wondering how much truth there is to this, and if I were to try to write-off some of these, how would I go about doing so?
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Answered in 5 minutes by:
3/10/2018
Lev
Lev, Tax Preparer
Category: Finance
Satisfied Customers: 33,276
Experience: Personal Investment, Tax Preparation
Verified

The truth is if that is your business activity or a hobby?

If that is your business activity - all these are deductible business expenses.

A key feature of a business is that people do it to make a profit.

People engage in a hobby for sport or recreation, not to make a profit.

.

To be deductible, a business expense must be both ordinary and necessary.

An ordinary expense is one that is common and accepted in your trade or business.

A necessary expense is one that is helpful and appropriate for your trade or business.

An expense does not have to be indispensable to be considered necessary.

.

Within certain limits, taxpayers can usually deduct ordinary and necessary hobby expenses.

But that deduction is very limited.

.

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Customer reply replied 5 months ago
Thank you!It is a business activity. I make all my money from either teaching music, playing music or recording music. So it's definitely my occupation, not just a hobby.Do I need a business license of some kind in order to obtain these deductions?I get a w-2 from my main job, which is a studio that I teach lessons at. (most income)
I also get a 1099 from the church that I play at. (much less income)
But other than that, most of the shows and other events I do with my bands, It's usually cash and without any forms. (least income)

Do I need a business license of some kind in order to obtain these deductions?

That is not required for federal tax purposes.

But you will need to keep a record for all your business income and business related expenses.

.

But if you are getting W2 income and self-employment income (reported on 1099misc) - you would need to account separately for expenses for each activity.

If there are common expenses - these must be apportioned.

Lev
Lev, Tax Preparer
Category: Finance
Satisfied Customers: 33,276
Experience: Personal Investment, Tax Preparation
Verified
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