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Atlas Inner circle 3103 1277 Posts |
Anytime a group of performers gets together, there seems to be a degree of "measuring" that goes on. There is always boasting by one or two about rates charged and initially, years ago, I believed a lot of these people. BUT, over the years, I've realized that there are a lot of insecure know alls out there that inflate their value in hopes of validating themselves to their peers. They don't really get these fictional rates, nor do they work nearly as much as they'd like others to believe.
This, of course, skews bases of comparision for other performers and can set unrealistic goals for new entertainers, who then spend all their time wondering where they've gone wrong. And so I offer up something I stumbled upon one day, which allows you to quickly determine whether your source is worth listening to or not. Ask about their tax situation. What tax bracket are they in? What deductions are they taking advantage of? What tax strategy do they employ and how has that led to the structuring of their business? If someone is making the sort of money they claim to be making, they'll have insightful and helpful answers to all these questions. They'll know their approximate tax rate and where the next tier is. They'll know if it was beneficial to set themselves up as a limited company and why, what sorts of expenses they're claiming, what assets are on straightline depreciation, all that stuff. They'll be able to speak intelligently on the subject because this knowledge will have allowed themselves to save a big portion of all that money they're earning. Remember: More money, more problems? They'll have met those problems and found solutions. And the advice they give will be hugely worthwhile. If they don't know about their tax situation, they aren't making the money they claim to be making. Worse, only when they make a big score will they realize just how much they've lost to - or more disastrous, now OWE the tax man and are unable to pay. I guess my point is that when groups of us get together and that one guy starts strutting, asking about his tax situation will either give you valuable advice or insight (there is always something to learn about taxes as the code is always changing), or it will let you know that maybe you should take their statements with a grain of salt. If you are just starting out and have no experience of your marketplace and your marketplace is being misrepresented by other performers to you, many of your decisions will be wrong. I don't know if this is helpful or not - I hope it is - but I thought I'd throw it out there and see what comments arise as a result. Best, Atlas |
Dannydoyle Eternal Order 21219 Posts |
It works every time.
As an additional idea I would say ask them about the transition from when they were not doing well to when they started to succeed. It almost always involved a LOT of mistakes in tax stuff. I know mine did. (Probably a good thread all by itself.) Maybe not used as a "gotcha" but as an actual helpful hints. I will say it cost me an embarrassing amount of money to be stupid about taxes. Then to compound it I actually realized we needed help and hired crooks not knowing it and got in deeper. Ended up talking to IRS ourselves and threw ourselves on their mercy telling them exactly how dumb we were. They worked with us and it is great. They saw we were dumb and did know and want to pay. Yes this is a good idea.
Danny Doyle
<BR>Semper Occultus <BR>In a time of universal deceit, telling the truth is a revolutionary act....George Orwell |
Dannydoyle Eternal Order 21219 Posts |
All of this to say my brilliant tax advice is to get a reputable qualified tax accountant. Thinking you know is worse than not knowing. Worse yet it IS FAR more expensive
Also beware of those who are not accountants dispensing free tax advice. And by the way 90% won't give advice as they have people for that and don't deal with it on their own if they are successful. They don't have the time.
Danny Doyle
<BR>Semper Occultus <BR>In a time of universal deceit, telling the truth is a revolutionary act....George Orwell |
Nash Inner circle Hong Kong ~ USA 1101 Posts |
Truthfully I still don't know the inner workings of my tax. I'm fortunate to have a good friend that does this for a living and took care of my S-corp.
And honest to god, as great as I am in mathematics, every time he tries to explain to me how tax works just goes right over my head. LOL. Meanwhile, it is a shame how some people would inflate their income. But that's understandable if they came from a background where money was hard to get by, and I've learned to not be judgmental of their lies. Personally, I'll never talk about $$ when I hang out with anyone, regardless. But maybe that's because I was fortunate to be born in a financially comfortable family with a hard working father. We were not rich by any means, but in comparison to our neighborhood we were def. more financially secured. My parents taught me the virtue of staying humble and never gloat about how fortunate we were; both as a moral and also for security as I assume they didn't want us to be accidentally a target of criminals.
I teach leaders the magic of curiosity and empathetic communication. keynote Speaker | Seattle magician
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Dick Oslund Inner circle 8357 Posts |
YES!!!!!!!!!!!!!
Those three posts should be a "sticky bun"!!! When I decided to go "full time" (in the '60s) I went to a reputable accountant, to PLAN. It was one of the BEST decisions that I ever made! >>>>>>>>>SHOW BUSINESS IS SPELLED: $how bu$ine$$ !<<<<<<<<<<<
SNEAKY, UNDERHANDED, DEVIOUS,& SURREPTITIOUS ITINERANT MOUNTEBANK
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TomBoleware Inner circle Hattiesburg, Ms 3163 Posts |
Atlas, I’ve heard that when a magician tells you how much they earn or how many shows they do, you should cut that amount in half to be close to the real answer. LOL
I’ve always said that a business person, magician or whatever, should know as much as possible about how taxes work. An accountant is only as good as you are. They don’t follow you around every day saying do this or that, or keep that receipt. The accountant works with what YOU give them. It’s also important to understand the difference in someone that does taxes at the end of the year and a real accountant. Those working part time or those that earn very little can probably get by with a tax preparer IF they have a record keeping system in place that they can use during the year. But if you are earning serious money, or if you have employees then you need an accountants help. Notice I said HELP. When it comes to your business, you should never put all your trust in someone else without understanding a little about what you’re asking them to do. Not saying you must become a tax expert but you should have a little knowledge of how taxes work. Don’t be afraid of asking the accountant questions, especially in the beginning. And never assume all accountants are the same, choose wisely by getting some references. Like Dick said, you need a PLAN. Tom
The Daycare Magician Book
https://www.vanishingincmagic.com/amazekids/the-daycare-magician/ My Blog - https://boleware.blogspot.com/ |
Dannydoyle Eternal Order 21219 Posts |
Quote:
On Jun 26, 2017, Nash wrote: My friend this post is GOLD! All of it not just the part I put here. I am in the SAME BOAT! I can do math in my head easily, but when taxes are the subject I glaze over. Also I will add that if you start to do well (Not you Nash, the you as a group of the world.) then it is almost impossible and irresponsible to try to do your own taxes. It is just SO complicated. If someone asked me for a tax tip I would give them the name of our accountant and book keeper. I have NO IDEA what tax advantages we have or do not have. I just keep hearing we don't have enough deductions! Also it is sort of silly to use it as a sort of "gotcha" for an online vendetta. We have enough of that here. Tom, don't be afraid to ask questions of your accountant! I can TESTIFY! OH yea!!!!! Great point Tom and true across any business. They are the ones who are "in charge" but you are the one RESPONSIBLE and asking questions is essential. Also choose one wisely and get references. Two more fantastic points.
Danny Doyle
<BR>Semper Occultus <BR>In a time of universal deceit, telling the truth is a revolutionary act....George Orwell |
Ken Northridge Inner circle Atlantic City, NJ 2392 Posts |
To the opening post:
I kind of see your point, but I would certainly not disregard someone’s advice based on their ‘tax situation’. Wisdom goes well beyond that.
"Love is the real magic." -Doug Henning
www.KenNorthridge.com |
Nash Inner circle Hong Kong ~ USA 1101 Posts |
Quote:
On Jun 26, 2017, Dannydoyle wrote: DITTO! We can talk all day about why must they make taxes so complicated. And when it comes to tax, yeah you def. need a professional unless you want to take the time to learn all the tax laws and get certified. And yeah, there aren't ever enough deductions. le'sigh .....
I teach leaders the magic of curiosity and empathetic communication. keynote Speaker | Seattle magician
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Dannydoyle Eternal Order 21219 Posts |
I couldn't agree more.
Danny Doyle
<BR>Semper Occultus <BR>In a time of universal deceit, telling the truth is a revolutionary act....George Orwell |
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