Recording Artist

[NotEasy]

Need help to categorize the business expenses of a recording artist.

She made and produced her own CDs and is selling them on the internet. She incurred the following expenses in 2008:

Recording sessions and studio fees $4,500
CD manufacturing: $1,200
Business meals: $300
Shipping and Postage: $100
Supplies: $150
Advertising and marketing: $600
Travel expenses for promotion: $350

My question is which of these expenses are considered 'cost of goods sold' and therefore may not be fully deductible in 2008.

I think at least the recording sessions and studio fees and the CD manufacturing cost have to be considered part of the cost of goods sold.

Thoughts?

[S T]

Dts

DTS (Dennis) has done a lot of research on this, so I am sure he will be posting shortly and give you all of the information that you need.

Sandy

[NotEasy]

DTS (Dennis) has done a lot of research on this, so I am sure he will be posting shortly and give you all of the information that you need.

Sandy

Do you happen to know Dennis's paging number?

[S T]

You can

You can private email him. He is really good about answering.

Also see this link for prior thread http://www.thetaxbook.com/forums/sho...ight=musicians

I believe there is more information, but I can not locate it at the moment.

Sandy

[JohnH]

Here's another thread on the subject

http://www.thetaxbook.com/forums/showthread.php?t=9267&highlight=recording

[DTS]

NotEasy

You can PM me and give me your contact number and we can talk tomorrow or this weekend, if you like. Not a problem for me.

This link is the best link on how to handle recording artists. I followed this for my musicians. They not only record, but perform, as well. I did allocate ALL expenses between performing (expensing) and recording (amortizing over 3 years. You'll see the % in the link). This took me a bit of time, as my people had a ton of expenses, travel, equipment purchases. This list goes on.

Anyway, take a look at this link and follow it and I think you'll be OK. Again, we can discuss, if you like.

http://www.howlandtax.com/articles/cdcosts.htm

One last bit of great news is that my fellows have been nominated for for several awards this year for their recording and performing. I gave all the kids in my neighborhood posters, CDs and other paraphanalia (sp). I'm now very popular in my 'hood!

D