Music & taxes - Do you deduct cable tv?

[kevinmathie]

OK, I know it's not even close to tax season, but I'm thinking ahead.I've never deducted any part of my cable TV bill on my taxes before, but I actually ought to be able to shouldn't I? I mean, I use it for business all the time. If a Taxi listing says they want some music in the style of "Desperate Housewives," then I record a couple episodes of Desperate Housewives on my DVR, and study the music in order to create something similar. In my mind, that constitutes a clear business use of cable TV.And, of course, I'm always checking out the music for commercials, and studying the music for lots of TV shows -- not only what kind of music they use, but how they use it: when do the strings come in, how does the music enhance (or, occasionally, detract from) the emotions of the scene.So, cable TV ought to be a legitimate deduction for people in our business, right?The question is, what percentage? Do you deduct 100% of the bill? Or do you split it up, saying that, 50% of the time you're watching TV, it's personal, while 50% of the time it's with your business ears? My problem is that when I'm kicking back relaxing, my mind is still keeping notes on the music in the programs. It's just a part of who I am and what I do. So, it's hard to say what percentage is "personal" and what percentage is "business" use. I'm not sure that it ever becomes completely "personal" for me.So, I thought I'd ask. For those of you who deduct cable/satellite TV on your taxes, how do you figure it?Also, what about internet use? Obviously, we all use the internet quite a bit for business, but there are times when we're emailing Mom and Dad, which isn't business. How do you deduct your internet bill on your taxes?

[Casey H]

KevinI would only trust answers from a qualified accountant regardless of what's posted here. We do have 1-2 accountant musicians here-- maybe one will chime in.I do know that you have to be careful making deductions without any revenue for more than a year or two. I was once told that more than 2 years with no income, it's considered a hobby not a business. But again, check with an accountant for the right info. Don't trust "opinions" here including mine.Best, Casey

[mazz]

I deduct it every year, have been for years. As to the percentage, I leave that to my accountant.I'm not saying you should, only your accountant knows for sure.HTH,Mazz

[anne]

My husand's business is incorporated. He is a scenic carpenter aka propmaker aka stage builder and art director. He is rarely here, but internet and lots of research take place when he is here and our accountant said both are legit deductions and just takes the full bill - why? because here you can't have high speed internet without having basic cable and vice versa.You'd be best served by talking it over with your accountant of course.

[stevebarden]

Sept 30, 2008, 11:54am, anne wrote: because here you can't have high speed internet without having basic cable and vice versa.Actually, most cable companies are required to allow you to have a data-only plan, ie, broadband internet without the TV service. They may not want you to know that, though!

[hummingbird]

If I were to claim part of my cable bill on my taxes as 'research' then I would have apply the same formula I do for the rest of the house. If say, I claim 33% of my rent as I use 1/3 of my living space for my studio, then I claim 33% of standard telephone, 33% of hydro, etc. Therefore, in this scenerio, I could claim 33% of cable as part of business expense. JMHO.

[flyingtadpole]

Bear in mind tax issues change spectacularly from one country to another. See a chartered accountant!

[jazzstan]

I'm not a tax-guy, but I am an CFO (which is only one notch above BFD). I don't have cable, so I'm not really in the mix with this question but ... If you keep written records that goes a long way to supporting the deduction.

[stephen1977]

Sept 30, 2008, 12:41pm, hummingbird wrote:If I were to claim part of my cable bill on my taxes as 'research' then I would have apply the same formula I do for the rest of the house. If say, I claim 33% of my rent as I use 1/3 of my living space for my studio, then I claim 33% of standard telephone, 33% of hydro, etc. Therefore, in this scenerio, I could claim 33% of cable as part of business expense. JMHO.Absolutely. Yes you can do this. I do it every year.Receipts. Receipts. Receipts.You can even write off eating out. Your explanation? You discussed a song you were working on or whatever. I write off my mileage every year as well. Wrote off 12,000 miles last year alone. Gas too. After all that vehicle takes me to every gig, every studio session, every music shop, etc.The best advice I could give is to get yourself an LLC. I registered one of those for all of my music and indie site (www.audio-village.com) to fall under. Wrote off a laptop, cell phone, etc. ANYTHING that powers the music creation is some way. There is always a loophole.But like others suggest.. ..speak with your accountant. I did, took his advice and now I reap the benefits. Actually, I don't even call them benefits, I call them compensation.

[suzdoyle]

I don't have cable, and rarely watch TV (so what the heck am I doing being a composer of TV theme songs??!!)But . . . My accountant recommends that I deduct any and all professional development expenses. This means anything that expands my abilities as a composer, writer, or performer, whether it be books, movie or theater tix, DVDs, internet expenses, etc. And realistically, just about every interaction in life expands your understanding of the world, your ability to express your impressions creatively, and your depth as an artist.Pragmatically, I deduct a percentage of my household costs (mortgage, utilities, etc.) as business, based on the amount of space used for my biz (e.g. 52% biz, the rest personal -- I have a teaching biz in my house in addition to doing composing/ recording ); but when it comes to anything involving the arts, media, entertainment, education, culture and the aforementioned "being an artist in the world," that is all deductible. Least that's what my accountant tells me.So, yes, deduct cable because that helps you hone your craft as a musician. (And, yes, check with your accountant first, just to make sure!!) ,Suz