Taxes...which form (and where) do you account for equipment purchases?

I guess this sort of belongs here in the band forum. Where should I put equipment purchases for claiming them as an expense? I'm talking about $500 worth of guitar effects, strings, etc. purchased in 2011. I claim my band income on line 12 of my 1040 and attach Schedule C. Total band income is around $3000. Thanks!!

You deduct equipment on the Schedule C as well. You have two choices in deductions....you can take a Section 179 deduction that gives you the entire amount this year, or you can spread it over several years be taking depreciation.

You can also deduct the cost of strings, parts, etc. that you purchased solely to make money as a musician. Those can be listed as miscellaneous deductions. In general, if the purchase is equipment that will last a long time, list it as a Section 179 deduction. If it is a supply that ordinarily has to be replaced on a regular basis, it can go as a Miscellaneous Expense.

If you kept mileage logs, you can deduct for the miles driven to and from gigs.

Remember that you can only deduct against the income you made as a musician.

The deductions will affect the total you put on your 1040.

Jim

Thanks, Jim!!!

Well, I think I got 'em all done. FYI for anybody else reading, I also had to fill out Form 4562. I think that was because I was reporting vehicle mileage as an expense...not 100% sure about that.