If you make money while you’re making music, you might be able to consider yourself… (wait for it!)….(wait for it!)…. a BUSINESS! And as a business, you get to write-off all kinds of things on your taxes: recording costs, disc manufacturing, equipment repair, engineer fees, PR costs, a portion of your mortgage or rent if used for rehearsal/office purposes, car expenses for touring, … the list goes on and on.
Of course, the IRS is going to want to see that you’re making a profit, so you can’t just write things off and take a loss for years on end. But if you’re a serious musician making a serious go at a music career, getting a big fat check in the mail from the taxman can be a huge help!
Check out CD Baby Podcast #47, where we interviewed Allen Jones (an informed fella who sits at the intersection of the music industry and the tax code).
Also, for more information, check out this article from MusicBizAcademy.com.
We haven’t quite hit tax season yet. First we have to get through the Holiday Season. But it’s never too early to think about organizing those receipts!
-Chris R. at CD Baby