What Tax Deductions Can Entertainers Take?
Being an entertainer is thrilling, but the financial side of things can be less glamorous. Come tax time, the costs of maintaining your career can take a toll on your wallet.
However, there's good news! You can deduct a plethora of business-related expenses to save money on your taxes. Understanding what you're entitled to write off can put significant money back in your pocket.
Download our Tax Write-Offs for Entertainers checklist to gather your documentation. Then, share it with us come tax time.
7 Main Tax Deductions for Entertainers
Below are seven main areas where tax deductions are prevalent. However, they are not the only tax deductions available. Give us a call to ensure you’re getting all the tax breaks you deserve come tax time.
Travel Expenses
If you're a touring performer, your travel expenses can be a significant burden. Thankfully, the IRS allows you to deduct costs such as flights, car rentals, and even meals and lodging if they are directly related to your business activities. Just remember to keep your receipts and records meticulous.
Equipment and Supplies
Musical instruments, microphones, costumes, or any other tools that are essential for your act can be deducted. Some equipment might qualify for depreciation deductions over several years, while smaller items can often be written off in the year you purchase them.
Marketing and Promotion
Building a brand is part of the gig. Expenses related to marketing and promotion — like website maintenance, social media ads, and PR campaigns — are deductible. Even business cards and promotional materials can be written off.
Home Office
If you use a part of your home exclusively for business purposes, such as a recording studio or a rehearsal space, you may qualify for a home office deduction. This can include a portion of your rent or mortgage and utilities.
Professional Services
Fees paid for agents, managers, lawyers, or yes, even accountants, are entirely deductible. These professionals are integral to the growth and maintenance of your career, and their costs can add up quickly.
Training and Education
Continuing education classes, acting or voice lessons, and even workshops are deductible if they help maintain or improve skills needed in your current profession.
Miscellaneous
Don't overlook smaller deductions like union dues, audition fees, or subscriptions to industry-related publications. Every dollar counts.
Being savvy about your tax deductions can save you a lot of money. Keep detailed records and consult with us in handling your unique situation. By taking advantage of every deduction available, you can focus more on your art and less on your finances.
Come tax time, don’t dread the numbers. Equip yourself with the right knowledge, and let the savings roll in.