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The Magic Cafe Forum Index » » Tricky business » » Worth it to document expenses now? (0 Likes) Printer Friendly Version

Ed_Millis
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Inner circle
Yuma, AZ
2286 Posts

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I am building a show. Well, I'm thinking and planning about how I want my show to be built. So there's going to be a lot of trial and error, buying props that will never see the stage, and trips out of town to magic stores (none less than 3 hours away) - and all before I ever make a single penny from any performance because I want to put up something decent.

At this very beginning stage, is it worth it to document expenses now? I'm working all this on a spare-time basis, and it may be 12-18 months before I set foot on stage.

How have y'all worked through this?

Ed
Steven Steele
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Chief of Staff
Hesperia, California USA
1904 Posts

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Definitely document everything. If you end up making lots of money, you'll be able to amend prior years to take advantage of the expenses you incurred. And if you don't make any money, the expenses will at least be a deduction. I'm not a tax expert, but I'd certainly talk to one....a real one...to get some advice on how to proceed.
Ken Northridge
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Atlantic City, NJ
2241 Posts

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Yes, document everything, keep all receipts. The year you do start a business, you can deduct it all as a start up expense. You can divide it up over a number of years if you want.
"Love is the real magic." -Doug Henning
www.KenNorthridge.com
Kevin Viner
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Loyal user
San Diego, CA
202 Posts

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Another vote for YES! Buy a small business tax book now, and read it. I recommend Small Business Taxes Made Easy, by Eva Rosenberg. It will pay off big time.
Dannydoyle
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Eternal Order
20019 Posts

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It never ceases to amaze me, people who ask magicians for tax help.

Ask an accountant, it is worth 10x the time as well as the money.
Danny Doyle
<BR>Semper Occultus
<BR>In a time of universal deceit, telling the truth is a revolutionary act....George Orwell
James Munton
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Inner circle
Dallas, TX
1199 Posts

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Quote:
It never ceases to amaze me, people who ask magicians for tax help.

...or the magicians who respond with their completely unqualified tax advice!
Dannydoyle
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Eternal Order
20019 Posts

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James, another good point. LOL

The next part is even worse.

THEY LISTEN!
Danny Doyle
<BR>Semper Occultus
<BR>In a time of universal deceit, telling the truth is a revolutionary act....George Orwell
Ken Northridge
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Inner circle
Atlantic City, NJ
2241 Posts

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Quote:
On 2008-02-28 19:07, James Munton wrote:
Quote:
It never ceases to amaze me, people who ask magicians for tax help.

...or the magicians who respond with their completely unqualified tax advice!


The advice that I gave came from Robert Steiner, a Certified Public Accountant and National Past President of the Society of American Magicians, in his excellent book, "Accounting and Taxes for Magicians." He comments that many magicians neglect taking this start-up expense deduction. Ed asked a good question.
"Love is the real magic." -Doug Henning
www.KenNorthridge.com
Ed_Millis
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Yuma, AZ
2286 Posts

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Quote:
On 2008-03-01 16:22, Ken Northridge wrote:
The advice that I gave came from Robert Steiner, a Certified Public Accountant and National Past President of the Society of American Magicians, in his excellent book, "Accounting and Taxes for Magicians."


How can we get a copy of that book?

Ed
James Munton
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Dallas, TX
1199 Posts

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Ken,

I'm sure it is a good book, but the federal tax laws change every year and different states also have different tax laws.

The minimal investment in having a CPA (especially one who is familiar with working with entertainers) prepare your taxes and provide advice is well worth it - I would actually suggest it is essential.

Magicians are notorious for being cheap and trying to save pennies, but in this case it really is short sighted, because a decent CPA will probably SAVE you money!

Best,
James
Ken Northridge
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Inner circle
Atlantic City, NJ
2241 Posts

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Here is his email address:

bsteiner@earthlink.net

Day 3
"Love is the real magic." -Doug Henning
www.KenNorthridge.com
Paddy
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Milford OH
1571 Posts

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Go to either a CPA or an IRS Enrolled Agent. The agent works for YOU not the IRS. Do NOT even think of H & R Block, Jackson Hewitt, or any of the "retail type tax people, they have no idea of what an entertainer can and can not deduct and can cost you in penalties. I learned the expensive way about them.
Non Impediti Ratione Cogitationis

I reject your reality & substitute my own

http://www.Scho-Lan.com
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