[rodgersorgan] Re: Tax Question for Prof Organist

Yes, deduct your organ on a depreciation schedule, either straight or 
accelerated! (see your accountant) It is what you need as a tool to meet the 
expectations your employer has. And...if you are willing to do the math, 
deduct the space your organ (and any other musical instruments) takes up. 
Also if you use a private office in your home for music planning, a computer, 
etc. deduct that. So if you use 10% of your home for music like I do, then 
you can deduct 10% of the utilities, 10% of some other things like real 
estate tax (I think). Check with your accountant. But...when you go to sell 
you then have to take back as profit what you had deducted for that space. 
This is tricky stuff. But I and my wife both have deducted space for home 
businesses totalling about 20% and I also have a dental pracice and office 
outside the home so I am used to filing 3 Schedule C's and am very familiar 
with tax law.

Also driving to different gigs. Keep a mileage log book. I do. I think I 
deducted about 7,000 miles last year at .52 a mile or something like that. 
Trips from church to buy music, meet with singers, etc. add up. You can also 
approximate. Remember your trip to work and back is not deductible mileage 
wise but all else is so stop at work first and go from there (or assume you 
did). You need to file a Schedule C for all this. You can do that and still 
receive a paycheck and a W-2 at the end of the year. After all, there is 
music you do that is not paid by the church so that is why you need that 
Schedule C.

My motto - DEDUCT! - remember the worst thing is they can disallow it but I 
doubt we organists are worth a big battle with the IRS since they need to 
justify the money to be gained for their time. But be sure to include all 
music income, like checks for funerals, weddings, etc. Because if you call 
attention to your tax status with an audit, they really look for hidden 
income. And hiding income throws a whole different slant on everything. 
Taxable income is law, deductions are a game of sorts!

Hope that helps! Have fun with your new tax deduction.

Jim Hockin, Rodgers Organ Studio, Minneapolis

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