Income Taxes / Beats

[Mindhack]

question, FP fam. I know at least some of us lease instrumentals. And this is mostly pointed at my U.S. compadres; but obviously that income came rack up after a while. How do you or, how are you supposed to write that shit off on taxes? I mean you hear a lot about artists who are now in some shit because they haven't paid their taxes in x-amount of time. So i mean, not everyone writes their income off on their taxes. But those out there that do, how does it work?

 

[Cyko]

It's quite simple.

You keep a record of everything you make through your business and you keep a record of all the expenses. Expenses such as: gear, business meetings, gas, rent (small % can be written off) your internet connection .. cell phone etc

Subtract that and you own pay taxes on what you have left over (your profit). With an LLC you have to profit 2 of the 5 years of ownership. I'm not sure if that is different state to state but check with a tax consultant on your states laws.


Or you can do what most people do and just hire a tax consultant. I personally tie my money up in investments and accounts this way I don't have to pay taxes. Last year I paid uncle same $200 in taxes but on the downside I can't touch the money i have placed in my accounts for xamount of years.

Sit with a tax consultant there are a lot of ways to get it done