Re: Tubas- Are they Tax Deductible?


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Posted by Not an accountant on April 28, 2002 at 15:45:36:

In Reply to: Tubas- Are they Tax Deductible? posted by Broke Tuba Player on April 28, 2002 at 11:31:50:

Although not an accountant, I do have an MBA and work in finance. A tuba would be tax deductable as a business expense for a professional just as computer would be deductable to a programmer. It would be considered a depreciating asset so the entire expense is not deductable at once, but it would be deductable over the effective life of the item. The percentage that would be deductable depends on the IRS's depreciation schedule for musical instruments. I assume that there is one, but if not you would have to find an appropriate depreciation schedule. At the end of the "schedule" the tuba will have been depreciated to zero and no further deductions may be made. If you sell the tuba at any time, the difference between the value for which you sell it and the depreciated basis would be considered recapture of depreciation and must be declared as income. Any expenses for "expendables" i.e. valve oil, could also be deducted against income in the year in which they are incurred.

How and if this deduction can be taken depends on whether you are filing as a business or individual and whether you have enough other deductions that when added to this deduction would allow you to itemize. How much it helps depends on your tax bracket. For example, if you are in a 15% bracket, you would save 15% of the amount of depreciation and other expenses that could be declared in that year.

All of this also assumes that you are a professional, which means that you can show positive cash flow from tuba playing in at least 2 out of every 5 years. Otherwise the IRS could consider it a hobby and disallow the deductions. The IRS looks closely at self employment business expenses like this.

If you are really broke you probably don't have enough other deductions to itemize and therefore this is all moot. Talk to an accountant if you want an answer appropriate to your specific situation.


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