Tax deductions for selling beats?

IamanArtist2000

New member
So I made over 21,000 last year selling beats through soundcloud/soundclick getting paid on Paypal(not counting some cash sales). I've got the 1099k form. This is my 1st year filling taxes where my main income came from beats. As a beatmaker, what deductions should I be lookin for in my records minimize the amount of taxes Im paying?
 
Awesome, my manski. Good for you (that's no small amount of beat-selling).

I am not an accountant or CPA, I can only tell you that A) you should talk to one, and B) a few things from my many years of experience being in the music business, and also being completely above board with all income, in regards to taxes...

* It would probably be a good idea to file some kind of paperwork to establish your company as a legit business entity, if you haven't done so already. Check out and get appropriate advice (CPA, attorney, etc.) on the various forms of businesses-- Sole Proprietorship, LLC, incorporation, S-corp, etc., and decide which one is right for you. If you're in the US, you'll have to deal with state and federal taxes, as well as some municipalities (like Yonkers), so having a business structure is an important step in legitimizing the deductions that you'll be taking.

* If you're asking about filing for this year, you might be a little late if you haven't been keeping track of your expenditures and getting receipts, etc., but for the future, you want to save receipts or invoices for anything that you spend to run, maintain, or grow your business. Again, a certified tax specialist will be able to give you more details, but you can take deductions for advertising (any business cards, Internet banner ads, flyers, paid networking sites, etc.), for business office expenses (any postage, website fees, copy paper...), and for any musical supplies (instruments, software, ) and equipment (computers, studio gear, etc.). There's a lot more, but it would be good to know more about how you operate your business, and again, best for you to seek professional guidance.

GJ
 
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So I made over 21,000 last year selling beats through soundcloud/soundclick getting paid on Paypal(not counting some cash sales). I've got the 1099k form. This is my 1st year filling taxes where my main income came from beats. As a beatmaker, what deductions should I be lookin for in my records minimize the amount of taxes Im paying?

Wow that's great income from beats selling
 
I found out a little too late that under 20k and 200 transactions Paypal would've NOT report it to the IRS.

Regardless if they don't report it you still can get audited (up to 7 years later) and end up owing twice as much in the future.

Something to think about.

Also: If you file your taxes using turbotax you will find that you are eligible for tons of deductions (if you can prove they were used for work). Things like rent for your studio, keyboards and gear, vsts, sample packs, etc.

If you plan on doing this long term then its probably worth it to start conducting your bizness like an actual business sooner than later...

$.02

Good Luck.
 
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