Mudcat Café Message Lyrics & Knowledge Personal Pages Record Shop Auction Links Radio & Media Kids Membership Help
The Mudcat Cafeawe

User Name Thread Name Subject Posted
GUEST,Songster Bob IRS Bothering House Concert Presenters (32) RE: IRS Bothering House Concert Presenters 16 Nov 07

I used to be a working musician (instead of a bureaucrat who also works at music) and I reported my income (it was always miniscule, each year) from teaching & playing (it was mostly teaching). Because I reported income, I deducted travel, instrument depreciation, parts & supplies, advertising, etc., and kept records of same.

The result is that each year I paid a small income tax, or no income tax (in bad years), and my FICA tax. Because of doing this, I am now collecting Social Security that I would not have collected had I not crossed those T's and dotted those I's. There are times when following the law, scrupulously, helps a lot "down the road."

The rule of thumb is you must show a profit in three of five years, if I recall what the thumb said in those days. It may be different now. But you should be careful to pay your FICA tax. To paraphrase a lumberjack song:

Pay your money when you're young, me boys,
You'll need it when you're old!


Post to this Thread -

Back to the Main Forum Page

By clicking on the User Name, you will requery the forum for that user. You will see everything that he or she has posted with that Mudcat name.

By clicking on the Thread Name, you will be sent to the Forum on that thread as if you selected it from the main Mudcat Forum page.

By clicking on the Subject, you will also go to the thread as if you selected it from the original Forum page, but also go directly to that particular message.

By clicking on the Date (Posted), you will dig out every message posted that day.

Try it all, you will see.