Re: Band Finances

["Hambone Hamilton" <harpmanx@xxxxxxxxxxx>]

Regarding option #3...there is a much easier way.  If you can't get the club 
to issue separate checks, and the band doesn't want to take turns doing the 
collecting...simply fill out a Schedule C with your tax return, marked as 
"hobby income", and on the "wages" line deduct from the amount on your 1099 
the amount paid out to band members.  This will leave your actual income 
from the band, from which you can deduct whatever you've spent throughout 
the year on legitimate band expenses.
IMPORTANT:  you CANNOT deduct a loss for hobby income on your return, only 
zero it out at best.  But you wont' owe much (or any) tax on it, I'm sure.
I'm an accountant by day and have been doing this on my taxes, and several 
musician friends, for several years.

Hambone


>Reply-To: "Dennis Cooper" <harmaniac@xxxxxxxxxxx>
>To: harp-l@xxxxxxxxxx
>Subject: Re: Band Finances
>Date: Fri, 11 Jul 2003 11:50:07 -0600
>
>
>There are a few easy ways to handle the "check" issue.
>
>1.Most events will cut a check for each member of the band if you request 
>it up front. Many performance agreements have a section for "special needs 
>and arrangements" that cover such things as dressing rooms, beverages and 
>other band requirements. I make check requests in this section of the 
>agreement. When I know an event is financially troubled I'll request 
>certified funds in order to perform. It's saved my butt on two occasions in 
>the past ten years.
>
>2. If you generally charge the same amount for each gig, just rotate who 
>gets the check each time and hope no one comes out with an odd check at the 
>end of the year. (not my favorite)
>
>3. Have the same person in the band (leader) get the check and fill out 
>1099 forms for each band member. It requires a bit of record keeping, but 
>you should be keeping track of all your expenses anyway, in case you need 
>proof of income and expenses at audit time.
>
>#3 requires a bit of effort, but with the constant rotation of band members 
>over time and the varied pay scales from gig to gig, it's the safest.
>
>Best Regards,
>The Harmaniac? Dennis M. Cooper
>http://www.mp3.com/crossharp
>http://www.crossharp.com
>
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