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Ed_Millis Inner circle Yuma, AZ 2292 Posts |
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 Chief of Staff 1868 Posts |
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.
Coram Deo
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Ken Northridge Inner circle Atlantic City, NJ 2392 Posts |
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 Loyal user San Diego, CA 203 Posts |
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.
Warmest regards,
Kevin Viner Corporate Magician in Los Angeles, CA | Magician in San Diego | Magician in Orange County, CA | |
Dannydoyle Eternal Order 21219 Posts |
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 Inner circle Dallas, TX 1199 Posts |
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 Eternal Order 21219 Posts |
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 Inner circle Atlantic City, NJ 2392 Posts |
Quote:
On 2008-02-28 19:07, James Munton 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." 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 Inner circle Yuma, AZ 2292 Posts |
Quote:
On 2008-03-01 16:22, Ken Northridge wrote: How can we get a copy of that book? Ed |
James Munton Inner circle Dallas, TX 1199 Posts |
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 Inner circle Atlantic City, NJ 2392 Posts |
"Love is the real magic." -Doug Henning
www.KenNorthridge.com |
Paddy Inner circle Milford OH 1571 Posts |
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.
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