coloradojay
New member
OK, I'm ready to admit that it's an addiction now (only 11 more steps right?) My gear habit is totally out of control, so I've decided that my best bet is to register a trade-name and start making my gear purchases part of a "recording studio" business.
I wanted to start a thread about this because I'd bet that I'm not the only one who hangs out here, who currently isn't getting a tax break for thier gear addiction.
I know we've certainly got a few pros here who do this full-time, as their whole income and are profitable, but I'm really more curious about the hobbyists who are getting a break from Uncle Sam to equip your studios.
Do you write off part of your expense of your home/apartment, as your place of business?
Is your studio currently profitable (on your profit/loss from a business statement)?
How long can you run a money-losing business (meaning that it's making money but you are still spending more than that on gear) before the IRS won't allow the write-off anymore?
Any tips about what method of amortization is best?
Any thing special to know about the recording business in general in terms of taxes?
...and a couple of questions that I'll be double-checking with an accountant very soon, but thought I'd throw out there.
Do I need to register my trade-name before buying the next wave of gear, or can I get away with using reciepts from the last year retro-actively, this tax year, as investments that were necessary to get started?
If I get laid off, would owning a non-profitable business effect my ability to collect unemployment? (I work in tech, and you never know, so I'm not sure that risking unemployment would even be worth the write-off for equipment)
Thanks in advance for any advice or experience you have to share.
-J
I wanted to start a thread about this because I'd bet that I'm not the only one who hangs out here, who currently isn't getting a tax break for thier gear addiction.
I know we've certainly got a few pros here who do this full-time, as their whole income and are profitable, but I'm really more curious about the hobbyists who are getting a break from Uncle Sam to equip your studios.
Do you write off part of your expense of your home/apartment, as your place of business?
Is your studio currently profitable (on your profit/loss from a business statement)?
How long can you run a money-losing business (meaning that it's making money but you are still spending more than that on gear) before the IRS won't allow the write-off anymore?
Any tips about what method of amortization is best?
Any thing special to know about the recording business in general in terms of taxes?
...and a couple of questions that I'll be double-checking with an accountant very soon, but thought I'd throw out there.
Do I need to register my trade-name before buying the next wave of gear, or can I get away with using reciepts from the last year retro-actively, this tax year, as investments that were necessary to get started?
If I get laid off, would owning a non-profitable business effect my ability to collect unemployment? (I work in tech, and you never know, so I'm not sure that risking unemployment would even be worth the write-off for equipment)
Thanks in advance for any advice or experience you have to share.
-J