Entertainer - Actor-Actress Expenses Etc

[S T]

That age old question - Have a young client that is trying to "break into" the "entertainment industry" acting

Does have approx $ 2,500 in income on W-2 form - however has approx $ 8,000 in so-called expenses. It is not going to matter on her 2015 Tax return - as it would be a 2106 form and she won't qualify for a Sched A, even if all of the expenses would qualify. For now I cannot see where she would qualify for a Schedule C.

Just seeking some guidance on deductible expenses for future. At what point can we look at the expenses versus the income

I have a reference to a ruling on "music expenses" that you can set up for Amort - however alot of those expenes was pre-production costs on CD's etc and they were on Schedule C

Anyone have experience with this?

thanks

Sandy

[ATSMAN]

That age old question - Have a young client that is trying to "break into" the "entertainment industry" acting

Does have approx $ 2,500 in income on W-2 form - however has approx $ 8,000 in so-called expenses. It is not going to matter on her 2015 Tax return - as it would be a 2106 form and she won't qualify for a Sched A, even if all of the expenses would qualify. For now I cannot see where she would qualify for a Schedule C.

Just seeking some guidance on deductible expenses for future. At what point can we look at the expenses versus the income

I have a reference to a ruling on "music expenses" that you can set up for Amort - however alot of those expenes was pre-production costs on CD's etc and they were on Schedule C

Anyone have experience with this?

thanks

Sandy

Qualified performing artist.

You are a qualified performing artist if you:

Performed services in the performing arts as an employee for at least two employers during the tax year,

Received from at least two of those employers wages of $200 or more per employer,

Had allowable business expenses attributable to the performing arts of more than 10% of gross income from the performing arts, and

Had adjusted gross income of $16,000 or less before deducting expenses as a performing artist.

In addition, if you are married, you must file a joint return unless you lived apart from your spouse for all of 2015. If you file a joint return, you must figure requirements (1), (2), and (3) separately for both you and your spouse. However, requirement (4) applies to the combined adjusted gross income of both you and your spouse.

If you meet all the requirements for a qualified performing artist, include the part of the line 10 amount attributable to performing-arts-related expenses in the total on Form 1040, line 24 (or Form 1040NR, line 35), and attach Form 2106 to your return. Your performing-arts-related business expenses are deductible whether or not you itemize deductions.


Does she fit this situation? I had one budding artist several years back that took advantage of this little provision.

[S T]

Atsman

thanks for the outline - That is what I need to provide to the Client moving forward to year 2016 and beyond

Sandy

[Burke]

That age old question - Have a young client that is trying to "break into" the "entertainment industry" acting.
Does have approx $ 2,500 in income on W-2 form - however has approx $ 8,000 in so-called expenses. It is not going to matter on her 2015 Tax return - as it would be a 2106 form and she won't qualify for a Sched A, even if all of the expenses would qualify. For now I cannot see where she would qualify for a Schedule C.
Just seeking some guidance on deductible expenses for future. At what point can we look at the expenses versus the income. I have a reference to a ruling on "music expenses" that you can set up for Amort - however alot of those expenes was pre-production costs on CD's etc and they were on Schedule C

Anyone have experience with this?thanksSandy

Yes. ATSMAN's post covers most of it. You didn't say what the "expenses" were, but one caveat: clothes. Must not be regular street wear, even if they insist they "must look good" for interviews, auditions, performances, etc.