10 Tax Deductions for Sound Recordings

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10 Tax Deductions for Sound Recordings


14 Feb, 2023


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The tax code can be complicated; it's no surprise that sometimes people end up making errors. If you're in the business of producing sound recordings, then there are a few things to keep in mind when it comes to taxes. This blog post will focus on 10 deductions and issues related to your sound recording business.

DISCLAIMER: NOT TAX ADVISE. CONSULT A CPA.

  1. in the US, sound recordings are considered "intellectual property." This means that you can deduct the costs associated with creating them.

  2. You can also deduct any expenses related to marketing and advertising your recordings. This may include things like postage, shipping materials, and website design and hosting fees.

  3. If you have employees who work on your sound recordings, then their salaries are deductible. This includes singers and musicians. However, this only applies to full time employees; part timers don't count!

  4. Sound recording equipment is also considered a tax deduction for business owners involved in the production of these types of media. You can also deduct the cost of any repairs, upkeep and utility costs for this equipment.

  5. If you have a recording studio in your home, then there are several tax deductions that you can take advantage of when it comes to business expenses. Rent or mortgage interest on part of your house that is used as a home office is one example. As well as property taxes and insurance.

  6. If you have a garage or basement studio, then things can get trickier as far as tax deductions go. However, it's still possible to deduct the cost of repairs and utility costs for this type of recording space used in your home business!

  7. When it comes to sound recordings that are sold to the public, there are a few tax deductions that you can take. The first is the cost of producing and shipping the recordings. You can also deduct any sales taxes that were paid on these items.

  8. If you have employees who work on your sound recordings, then their salaries are deductible. This includes singers and musicians. However, this only applies to full time employees; part timers don't count!

  9. If you're a musician or singer who sells their music online, then there are some specific things to keep in mind when it comes to filing your taxes. The first is that the income you make from royalties for digital downloads or streaming counts as self-employment income. This means that just like with selling physical products, this money will be taxed at a similar rate!

  10. The final thing to remember when it comes to sound recording business deductions is that they all must pass muster when it comes to having a clear business purpose. This means that if you're not sure whether or not an expense is deductible, then ask yourself what the money would have been used for in any other situation. If this doesn't seem possible, then you can likely deduct these costs associated with your sound recording work!