How to make money even if youre band doesn't!!

Multibomber

New member
While I'm waiting for my Adderall to kick in so I can finish all the homework I didn't do over spring break, I thought I'd let all you kids know how you can get a big fat check from Uncle Sam. If you have a job, you can get a much bigger tax return, all thanks to your band!

Heres what you do:
1. File an LLC with your band. http://www.wisegeek.com/what-is-an-llc.htm Basically you'll say you're a professional drummer and playing drums in your band is your business. It doesnt matter how old you are or how much money you make, and filing an LLC is very cheap.
2. Pay with a debit card every time you buy gas, heads, sticks, drums, anything drumming related, food-related, or transportation related. You can also pay cash but you'll have to save the receipts... every single one.
3. When you do get paying gigs, or if a friend owes you money for mowing their lawn or walking their dog, ask them to write you a check and on the memo, have them write "drumming" or "music" or something to that effect.

Heres where you make your money:
Say you made $20,000 working at McDonald's last year and they took out $4500 in taxes. If you have all your receipts for sticks, drums, heads, etc. or payed with a debit card, thats a deduction. A deduction is a way to reduce your amount of taxable income. Say you spent $1000 on drum equipment last year.

$20,000
-$ 1,000
-------------------------------------------
=$19,000

Now they can only tax you on $19,000 instead of $20,000, so you're going to get some of that $4500 back... probably about $400. Now heres how rich people get rich. Remember how I mentioned gas and food? Since drumming is your business, you can say that the gas you bought was to go play a show. You get so many cents back for evey mile you drove. All the food you bought, you say you bought for the band. You guys have to eat when you practice, and you practice everyday. Now all your gas and food purchases are tax deductions. You probably spent $10,000 on food and gas last year. So now:

$20,000
-$ 1,000
-$10,000
-------------------------------
=$ 9,000

Now your taxable income is only $9,000... now your tax return check is gonna be about $4000!! That my friends, is how you make money in your band. Now you might be asking yourself "Multibomber, is this legal?" Ask any business owner, senator, governor, legislator, or President of the United States. Not only is it legal, it's how our system was made to work. All you have to do as an American is play by the rules and you can live very well.

BTW, if you dont understand any of this, theres plenty of people on this board who can explain this even better than i can... ask your parents! They'll probably be thrilled that you have an interest in saving them money. Oh ya I forgot to mention that... if your parents claim you as a dependent, they'll get the money back, not you. But it wont be hard to convince them to give you a chunk of change or buy you that sick new snare drum if they know its basically going to be free for them. You could probably even get them to pay for your whole band to talk to a tax attorney (costs about $100) and he'll tell you even more things than I can think of right now. Remember: Parents want to see you take initiative! Treat your drumming as investing in your future, and they will too!
 

Multibomber

New member
Oh by the way, you only have to prove everything if you get audited. What happens is people get greedy and start flat out lying about how much food or gas or equipment they bought. Dont get greedy, have receipts for everything and no one will bother you. But this is a perfectly legitimate way to get Uncle Sam to pay for that new PA system you want.

Theres also a thing called a sole proprietorship... which I dont really understand... anyone?
 

Timekeep69

New member
Be careful, the more you deduct, the better chance of an audit and when you're audited, you have to prove your innocence.
 

SGarrett

New member
You get mileage or gas and maintenance, not both. Mileage is almost always adds up to more.

For this to work you absolutely need a W2 to get an earned income tax credit. Neither my wife or I had one for '08, because we were completely self employed, so we missed out on a $10k refund due to our mileage. We almost ended up owing $900 but now we're going to get $33 back.

Also consider the fact that you'll have to pay taxes, and 15% self employment tax, on your newly founded business. And there's the audit that PJ brought up. You have to post a loss to avoid suspicion.
 

Multibomber

New member
Its not too difficult to post a net loss. Technically, I've never made a single dollar in my entire life. And you dont have to worry about the 15% self employment tax if your business, which is your LLC or your sole proprietorship or your partnership has lost money during the year. You cant pay taxes on money you didnt earn, thats the beauty of deductions. There's even sneakier ways to avoid paying taxes if your tax lawyer is so inclined. A guitarist friend of mine, who is a scientist and teaches guitar, made $61,000 last year and got a $9112 tax return. He didnt even file an LLC, he just put his profession as a musician and deducted every mile he drive the entire year. Along with anytime he ever went to a bar or bought food. He has records for everything via his debit card and its totally legit. I do know its easier if you have an LLC, the IRS is less likely to audit you because they expect you to post a loss for the first 3 years of your business.
 

screamkevin

New member
"Hey, let's post ways to cheat the government out of money on the internet!! Cool!" :?

Not that I disagree, just sayin'...
 

Multibomber

New member
Its not cheating, thats just how the system works.. watch.

Hey IRS!! My name is DAVID ANTHONY VELEZ and this is why you have to give me a check for $1012.42!!! Thanks and I'll talk to you again next year!!
 

SGarrett

New member
Multibomber":1v04ffz8 said:
Its not too difficult to post a net loss. Technically, I've never made a single dollar in my entire life. And you dont have to worry about the 15% self employment tax if your business, which is your LLC or your sole proprietorship or your partnership has lost money during the year. You cant pay taxes on money you didnt earn, thats the beauty of deductions. There's even sneakier ways to avoid paying taxes if your tax lawyer is so inclined. A guitarist friend of mine, who is a scientist and teaches guitar, made $61,000 last year and got a $9112 tax return. He didnt even file an LLC, he just put his profession as a musician and deducted every mile he drive the entire year. Along with anytime he ever went to a bar or bought food. He has records for everything via his debit card and its totally legit. I do know its easier if you have an LLC, the IRS is less likely to audit you because they expect you to post a loss for the first 3 years of your business.
I have an accountant and am self employed, bro. :)
 

Empyrean Drums

New member
You can't keep claiming a loss year after year; in Colorado it's 3 and then you're done.
The IRS also tends to notice when you claim $10,000 in expenses with no income or invoices. You can justify it the first year with start up expenses, after that you need to produce some results.
 

Multibomber

New member
Youre absolutely right, you cant keep claiming a huge loss, but you can still have it tip the scales in your favor. Although with a little luck, after 3 years you WILL be making money with your band, instead of it just being one big expense! I bet you there's only a couple people on this board who can say they've made more than they've spent playing music... I sure as hell cant say that!
 

Assback

New member
im down. ill think this over come tax time 2010

don't feel bad about ripping off uncle sam at all.

kill cash. employment is obsolete.
 

Potatoe Snack

New member
good luck with all that! too much bs for me to handle, the moneys not worth it for me in the end. i get a modest amount back in taxes every year and while it would be nice to get more, i guess i'm just not comfortable being sneaky, even if it is legit.
 

TheLoneGunman

New member
Yo all! long time no see. I need to get as much info about taxes as possible because I took a job with a production company in KC that puts together bands for coorporate events, and I had to fill out a W9 form, so next year I'll have to file the income I make as a musician and I'd like to not have to pay 40% of that income in taxes.

I need to talk to a tax guy.

I'd sure like to start TheLoneGunManPwnsThroughDrumsLLC.

oh and my first gig with the company was infront of 800 people. That still blows my mind. I'm still used to playing infront of no one. lol

peace,
Alex "TheLoneGunman"
 

johnisonfire

New member
I don't think LLC's are that cheap. I mean, they're relatively cheap but a few months ago I figured out it would cost about $600 in fees for me to start one.

But yeah, you can make it up with an increased return the next year.
 

Brother_Bong

New member
You don't need to be an LLC. You just have to file a schedule C with your taxes. And keep all the receipts you can. If you don't have all the receipts, you still aren't screwed. For instance I wrote off some equipment last year, and while I DID have the receipts, the important part was I DID HAVE THE GEAR. Sometimes proof is in ownership.
 

Brother_Bong

New member
It's a tax form you use when you claim yourself as a "business". Thats what I used this year and it worked pretty well for me.
 
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