Saving Money AFTER You Spend
IT!
The number one mistake musicians make really has nothing to do
with music or entertainment at all. It has to do with a simple
tax concept: deducting expenses. I have only met three musicians
who have understood this basic concept before having consulted
with them myself. Ironically, it can save an artist thousands
and thousands of dollars per year, and yet they throw money
away. What is this big dark secret? Did you know that you can
write your business expenses off your taxes? Here's how it
works.
Most of you are contractors, not employees. Let me explain. The
person who paid you deducted nothing from your check before
paying you. In other words, you are paid per job, being given a
gross amount each time you perform, where you are totally
responsible for all taxes to be paid. This makes you a self
employed contractor. In the entertainment business, there is a
huge advantage to this status.
Just think of all the things you purchase just so that you can
perform. Your music, your instrument, your amplifier, cables,
chords, the cart you use to move it all...your gas...even travel
costs. Now, think about all of the other things around your
house that you need in order to do your work; your computer,
your printer, copier, even paper...even the office space! All of
these things are completely necessary in order for you to be
working. ALL of these things are called "deductions." Just like
the word says, you are allowed to deduct a portion, and often
the entire amount of the cost of these items off your taxes.
Give us a call or email us and EC will help put you in contact
with people who work with us who can help you organize you
finances in order to take advantage of this opportunity. It's
simple. It's easy. If you aren't deducting now, you WILL save
lots of money.
