[Callers] Totals for taxes

[Rich Sbardella via Callers]

Here is a page from the IRS website regarding hobby vs for profit business.

https://www.irs.gov/uac/is-your-hobby-a-for-profit-endeavor

Rich Sbardella

On Tue, Jan 17, 2017 at 8:58 AM, Tony Parkes via Callers <
callers at lists.sharedweight.net> wrote:

> Luke Donforth wrote:
>
> <<I've already had two inquiries, so I should specify, the $8000 was
> income paid not counting airplane tickets. It didn't remove mileage
> reimbursement, CDSS membership and insurance, etc.
>
> Net comes to about $5000.>>
>
>
>
> Luke, does your “net” figure represent what you have left after **all**
> expenses? Have you deducted 54 cents per mile driven (the IRS rate for
> 2016), whether or not you were reimbursed? (The alternative is to figure
> actual car expenses and deduct the percentage of those that corresponds to
> business use of the car, but it’s simpler to take the mileage allowance.)
> If you own any sound equipment, whether it’s a mic or a full system, have
> you expensed or depreciated each piece? (I’m not an accountant, but our
> accountants have always told us it’s OK to expense relatively small
> purchases rather than bother with depreciating them.)
>
>
>
> The one expense we don’t bother listing is meals on the road. The IRS
> allows only 50 percent of those to be written off (rule adopted in response
> to the three-martini business lunch); much of the time we get fed by our
> hosts; we tend to eat cheaply when we’re paying out of pocket; and we
> figure we would have spent that much on food anyway. But all other expenses
> get itemized on Schedule C.
>
>
>
> In a typical year our net (taxable) figure is less than half our gross. I
> agree that it’s a good idea to think about these things as one weighs how
> intently to pursue calling or playing for dances. I used to go anywhere for
> any amount of money, just for the joy of calling. Somewhere along the line
> I realized that I was losing money on many of my gigs, and I got more
> careful about pay scale vs. distance traveled.
>
>
>
> For many years my rule has been “for love or money” – both is better, but
> one or the other is essential. If I suspect it’s going to be a tough gig
> (e.g. an open bar or a “family” dance where the parents won’t join in), I
> quote high enough that I won’t kick myself later. Conversely, I’ll go out
> for short money if it’s a chance to work with some treasured
> friends/colleagues, or if it’s a new series that wants help getting off the
> ground, or if I get to call lots of Merry-Go-Round-type squares <evil grin>.
>
>
>
> Not specifically addressed to Luke: There’s a common belief that if the
> IRS decides your calling or playing is a hobby, you’re not allowed to
> deduct any expenses. On this subject, the IRS says only that losses can’t
> exceed gross income, so presumably you can deduct expenses down to the
> break-even point. Note that if you’ve made a profit in three of the last
> five years including the most recent year, the IRS assumes it’s a
> legitimate business.
>
>
>
> Tony Parkes
>
> Billerica, Mass.
>
>
>
> *From:* Callers [mailto:callers-bounces at lists.sharedweight.net] *On
> Behalf Of *Luke Donforth via Callers
> *Sent:* Tuesday, January 17, 2017 7:56 AM
> *To:* Callers at Lists.Sharedweight.net
> *Subject:* Re: [Callers] Totals for taxes
>
>
>
> I've already had two inquires, so I should specify, the $8000 was income
> paid not counting airplane tickets. It didn't remove mileage reimbursement,
> CDSS membership and insurance, etc.
>
> Net comes to about $5000.
>
>
>
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> Callers at lists.sharedweight.net
> http://lists.sharedweight.net/listinfo.cgi/callers-sharedweight.net
>
>
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