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

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!

 

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.

 

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.

 

Just remember, tax violation was how they finally got Al Capone.

 

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.

 

If it turns out you can't, at least you'll have your "free" guitar to enjoy in prison.

 

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.

 

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!

 

Ask a tax professional. Better yet, ask three.

 

Not true, you only have to make a small profit every 3-4 years to comply as a "non hobby"

 

But if you are claiming a deduction then you would also need to declare the income too, right?

 

But be ready for at least 3 answers (said the former "tax professional")

 

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.

 

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.

 

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.