If you’re in the business of creating, performing, or recording music, there are steps you can take to make the most of your year-end gear purchases and potential tax deductions. But you need to wrap these up by December 31 to be able to claim them on your tax return, so you’ll want to plan your purchases now.
Take a look at the links below; they offer lots of useful information.
If you’re new to the issues related to tax deductions for recording and performing musicians, this article by our friends at Disc Makers does a great job of summing up the main points.
This article explains travel, meal, vehicle, and equipment expenses (for both gigging and studio musicians), and helps you determine whether or not you can deduct them on your tax return.
Here’s a “nuts and bolts” explanation of Section 179 (first-year depreciation allowance for equipment) and how to take advantage of it. It’s important to know that the allowable limit for Section 179 deductions was reduced in 2015.
Of course, we’re not legal experts or tax advisors, so you should definitely discuss these issues with your professional tax advisor. Each individual’s situation is different, and these links are for informational purposes only. After you’ve had a chance to look them over and if it makes sense for your tax situation, please give us a call. We’ll be happy to work with you on end-of-year purchases.