The SongWriter's Studio
P.O.Box 210902
Nashville, Tennessee 37221
Phone:(615) 952-2138
THE IRS AND YOU - Deducting
your songwriting
There is a lot of confusion about the business of songwriting, and one of them is how the IRS views it.
Many songwriters wonder, “ Can I deduct my demo costs ? “. The answer is a big YES. The IRS considers your songwriting venture to be a business. What business doesn’t have expenses ? I recommend you keep records of all things involved in your songwriting business, from postage costs, demo costs and even phone calls. You might be surprised at how much you can actually deduct. You can calculate that for every dollar spent you are going to save from thirty to forty cents in actual taxes. So if you spend $1000 on demos this coming year, you’ll pay the IRS approximately $300 less in income tax. You must file Schedule C. If you have a hit song, the IRS will want it’s share, so why not take advantage of the tax laws when your business is starting up. It is the music business, so treat your songwriting as a business. What other hobby will help you get a true financial return from day one ? See an accountant if you are unsure how to fill out Schedule C, though it’s quite easy today to do yourself with computer tax preparation programs such as TURBO TAX.