Re: Music as a business


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Posted by Tom Mason on November 26, 2001 at 12:45:32:

In Reply to: Music as a business posted by Steve Dedman on November 26, 2001 at 12:08:54:

Here's my shot at this:

I know the amounts were not asked for, but maybe this will help answer some questions.

I make a hair below $50,000 per year in music.

(AT)$40,000 teaching, and (AT)10,000 playing.

I keep a calendar separate from family activities outlining the performance, amount of pay, paying person, and location of performance. At tax time, I refer to this calendar, and use a predetermined mileage chart I have constructed to calculate my travel for the year.

Some tips I find useful are:

1. Save all receipts for instruments, accessories, and repairs. Use them in figuring out what you can have deducted. Mouthpieces, strings, tuners, and all other accessories can be used as long as you use them on gigs.

2. Count all of your mileage. In my case, 3 rehearsals and 4 performances of a summer musical adds up to 7 trips. Mileage can add up quickly.

3. Students paying for lessons are accounted for in the same manner as my performances. Non-paying students should be dealt with quickly but fairly. Deadbeat non-payers are caught quickly and not continued at the end of the month, unless arrangements are made. My arrangements are easy and flexable, but the student must initiate the contact and make good on the solution.

4. Be honest with what you report. Make sure that someone who is paying you a large amount of money for a gig is reporting your income as one of their expenses. I find it better to over report (report it if you have a question), than to under report.

5. Have a professional do the taxes for you. Undergrad and graduate school work and many years experience does not make me a tax guru. I found out the hard way, (not too hard, thank goodness), that I don't know enough about the tax codes to do my own taxes.

6. I do my own business cards on computer. I can print 100 at a time, and not spend more than $5.00. I have them anytime I am out of the house. Leave them with anyone who will take them. You never know when they or someone else will need your services.

By following this list, I can usually make most of the playing money become travel expenses and instrument replacement deductions. I am willing to pay my fair share, but no more.


Good luck.

Tom


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