1. Win a Broadcaster or one of 3 Teles! The annual Supporting Member Giveaway is on. To enter Click Here. To see all the prizes and full details Click Here. To view the thread about the giveaway Click Here.

You reckon I can write off the purchase of a new guitar?

Discussion in 'Bad Dog Cafe' started by 985plowboy, Dec 1, 2020.

  1. 985plowboy

    985plowboy Friend of Leo's

    Posts:
    3,484
    Joined:
    Feb 5, 2012
    Location:
    South Louisiana
    I’ve been in the same band for over five years. We get paid to play. We have formed an LLC and have a checking account etc...
    I receive a 1099 from the band every year and claim the income on my taxes.
    If I buy a guitar, can I write it off?
    Anyone actually done this?
     
    Dismalhead likes this.
  2. Danb541

    Danb541 Tele-Afflicted

    Posts:
    1,817
    Joined:
    Nov 27, 2019
    Location:
    Oregon
    Yes, of course you can. You can also write of your amp, pedals, cables, travel and meals expenses, mileage on your vehicle, your home studio. Save your receipts!
     
    Festofish, OmegaWoods, djh22 and 2 others like this.
  3. PastorJay

    PastorJay Tele-Afflicted

    Posts:
    1,812
    Joined:
    Apr 12, 2014
    Location:
    California
    I've done it with lots of gear.
    You might need to amortize the cost over time.
    I don't remember what the depreciation schedule is for a guitar.
     
    985plowboy likes this.
  4. Marc Morfei

    Marc Morfei Friend of Leo's Silver Supporter

    Age:
    55
    Posts:
    2,263
    Joined:
    Feb 6, 2018
    Location:
    Wilmington, DE
    Before this gets out of hand I feel it should be pointed out that not all of us can do this. Note the OP is a formal and legitimate business entity with legal standing for tax purposes. Making a few hundred or even thousand from bar gigs does not automatically qualify the rest of us to start taking tax deductions. Someone with true qualifications (not me) may be better able to explain the difference.
     
  5. Buckaroo65

    Buckaroo65 Tele-Holic

    Posts:
    585
    Joined:
    Nov 8, 2019
    Location:
    Lucky Spot
    Just remember, tax violation was how they finally got Al Capone.
     
    Larry F likes this.
  6. KirbyBarba

    KirbyBarba TDPRI Member

    Posts:
    66
    Joined:
    Oct 21, 2020
    Location:
    USA
    If you own your home be careful about deducting part of it. When you go to sell your home, the amount you have deducted will be re-captured for tax purposes. I believe that rule is still in force. Consult a tax guy.
     
    985plowboy and Danb541 like this.
  7. Lucius Paisley

    Lucius Paisley Tele-Holic

    Age:
    45
    Posts:
    596
    Joined:
    Mar 19, 2020
    Location:
    Sydney, Australia
    If it turns out you can't, at least you'll have your "free" guitar to enjoy in prison.
     
  8. PastorJay

    PastorJay Tele-Afflicted

    Posts:
    1,812
    Joined:
    Apr 12, 2014
    Location:
    California
    The standard for tax purposes is that if you don't make money after expenses it's a hobby (although having a year that you lost money because you invested in something like expensive recording gear, a truck to haul your gear around, etc., wouldn't necessarily put you in the hobby category). And you can't write off expenses from a hobby. If you make money after expenses it's a business. When I was playing clubs on the weekends I justified buying gear because I had the income, but I always made sure I showed a profit.
     
    985plowboy likes this.
  9. schmee

    schmee Doctor of Teleocity

    Posts:
    13,395
    Joined:
    Jun 2, 2003
    Location:
    northwest
    Yes, do it all the time. For bigger things like guitars you amortize it over a few years, so you wont get a one year write off.
    Be sure to estimate your mileage to and from gigs and rehearsal etc. It's pretty big bucks!
     
  10. Richie Cunningham

    Richie Cunningham Tele-Holic

    Posts:
    843
    Joined:
    Jul 4, 2020
    Location:
    Midwestern United States
    Ask a tax professional. Better yet, ask three.
     
    OmegaWoods and djh22 like this.
  11. schmee

    schmee Doctor of Teleocity

    Posts:
    13,395
    Joined:
    Jun 2, 2003
    Location:
    northwest
    Not true, you only have to make a small profit every 3-4 years to comply as a "non hobby"
     
    bgmacaw likes this.
  12. Marc Morfei

    Marc Morfei Friend of Leo's Silver Supporter

    Age:
    55
    Posts:
    2,263
    Joined:
    Feb 6, 2018
    Location:
    Wilmington, DE
    But if you are claiming a deduction then you would also need to declare the income too, right?
     
    soul-o likes this.
  13. djh22

    djh22 Tele-Afflicted Silver Supporter

    Posts:
    1,632
    Joined:
    Jan 12, 2012
    Location:
    VA
    But be ready for at least 3 answers (said the former "tax professional") :lol:
     
    985plowboy likes this.
  14. schmee

    schmee Doctor of Teleocity

    Posts:
    13,395
    Joined:
    Jun 2, 2003
    Location:
    northwest
    Definitely, take a business loss for 2-3 years then make a profit for a year. Your plan is to promote and get rich right? :>) I think the OP said he IS claiming. I have never done my taxes. I've had two people do it for the last 50 years.
     
  15. soul-o

    soul-o Friend of Leo's

    Age:
    52
    Posts:
    2,185
    Joined:
    Jan 29, 2007
    Location:
    Boston
    Small business owners can no longer deduct most personal expenses (tools, supplies, etc) as part of the revised simplified tax code from within the past four years. I used to be able to do it as a performer and partner in an S Corp. I can’t do it anymore, but I’m not sure how 1099 status would be impacted. All I know is that I am buying a ton less gear because I can’t write things off.
     
  16. Greggorios

    Greggorios Friend of Leo's Silver Supporter

    Posts:
    3,502
    Joined:
    Jun 18, 2016
    Location:
    NY
    Based on the OP seems very likely since you get a 1099 and declare the income but be smart and let an account or tax professional review it with you.
     
    985plowboy likes this.
IMPORTANT: Treat everyone here with respect, no matter how difficult!
No sex, drug, political, religion or hate discussion permitted here.