Fucking Tax Season For Home Studios (poll)

[brianhood]

The dreaded tax season has arrived, so I wrote a (hopefully helpful) article about how I handle taxes for my home studio.

http://blog.456recordings.com/recording-studio-taxes/

Whether you pay taxes for your production work or not, this is worth checking out. I cover a few good reasons to be legit with your taxes from day 1, how the IRS can straight up fistfuck you if necessary, and my step-by-step method for tax prep.

If anyone has feedback about things you think I left out or parts I should change, let me know!

I also made an anonymous poll to see if home studios generally pay taxes or not...be honest!

 

[JeffTD]

Where's the option for operating the studio at a loss (read: lots of gear writeoffs) to reduce your actual W2 income?

 

[brianhood]

Where's the option for operating the studio at a loss (read: lots of gear writeoffs) to reduce your actual W2 income?

I wish that was a thing haha. I'm sure it would help a ton of people doing audio as a side hustle.

 

[egan.]

I wish that was a thing haha. I'm sure it would help a ton of people doing audio as a side hustle.

It's definitely real. Schedule C and line 12 of the 1040.

 

[The StabbinCabin]

Thanks for this. In the process of getting my shit together and going through bank statements highlighting and dropping it into Excell. Unfortunately for me, these last two years are going to have to be written off as a loss.

Been a while since I've been on here. New layout is cool.

 

[JeffTD]

It's definitely real. Schedule C and line 12 of the 1040.

This, it's totally a thing but you can only do it for 2/3 years or they tell you to stop classifying your hobby as a business.

*Edit* double-checked, If you can't show profit in 3 of 5 years they classify it as a 'hobby business' and you can't use schedule c losses to offset wage income.

 

[brianhood]

This, it's totally a thing but you can only do it for 2/3 years or they tell you to stop classifying your hobby as a business.

*Edit* double-checked, If you can't show profit in 3 of 5 years they classify it as a 'hobby business' and you can't use schedule c losses to offset wage income.

Damn, that's great to know! I'll be sure to spread the word on that, as it wasn't something I was aware of.

 

[Silencok]

Yeah, I pay the tax season for my home studio, and I'm not too fond of it. I know many people are not honest with them, and they may not pay this tax, but I'm 100% honest with them. I don't want to have tax problems that can lead to jail. I'm already used to the fact that there are taxes everywhere, and they are pretty high. I got used to it because I was so shocked when I found out how much I pay for taxes on my salary, lol. And I found out this not through the accountant at work but because some friends showed me how to create a paystub. Thanks to them for proving this to me, and now nothing amazes me.