That's the first I've heard of this, Tina.

And Jon, did you have to incorporate to write off your CD purchases?

Yeah, I hear that "sharing your art" thing is TOTALLY overrated ; )

Point.

Cooler than having women throw their panties at you?

Set and Match.

THE SIX PARTS SEVEN & GUESTS Lost Notes from Forgotten Songs (cd)

We have that at WMBR. I tried to like it, but couldn't get into it.

And Jon, did you have to incorporate to write off your CD purchases?

Nope. You just have to file a Schedule C and be able to prove (if audited) that you're trying to make it a profitable business. There used to be an IRS reg that the business had to be profitable in at least two of the last five years (I think), but the courts threw it out.

Dammit. You all beat me to my actuaries and rock & roll joke.

They're not kidding about that profitability thing, though. A hobby that might make you money doesn't cut it.

New Pornographers, Mass Romantic (I have it, but only a copied version)

I want this.

OMG. I never ever ever EVER want to see this number as it pertains to myself. I would officially have to take away my own license to be an adult considered smart enough to exist independently of others.

I'd say that like half of my paycheck goes to cds, which doesn't include the ones I burn. I, too, have a bit of a problem.

Nope. You just have to file a Schedule C and be able to prove (if audited) that you're trying to make it a profitable business. There used to be an IRS reg that the business had to be profitable in at least two of the last five years (I think), but the courts threw it out.

I seriously doubt that anyone would believe me. I mean, we spent at least $1500 last year recording, and probably made $750 or less throughout the year. And that doesn't take into account the money we each spent on equipment.

But everyone knows that Making It As A Rock Star requires years of penury! Don't they watch VH-1?

I seriously doubt that anyone would believe me. I mean, we spent at least $1500 last year recording, and probably made $750 or less throughout the year.

You might be right, but for the wrong reasons. Shawn can correct me, but what matters is not how much you lose, but whether you make a good faith effort to be profitable. For example, in the past, The Lothars hired a publicist, we've gotten national press, charted on CMJ, and we worked with independent distributors to get our product out there. We never sold more than a couple hundred CDs, but we tried. From what I know about TDS, you didn't really do much other than play some local shows and sell some CDs at the shows? I'm not belittling, just trying to get a sense of what you guys did.

what matters is not how much you lose, but whether you make a good faith effort to be profitable

Sounds right to me. Plus, you don't have to turn a profit or intend to that year-- as long as you ultimately intend to have a profitable business and not a tax shelter.

FWIW - my buddy at work who has a band (Trucker - no reason anyone would have ever heard of them) but is a full time web designer has been writing off equipment, CDs, computer stuff, travel, etc. for three years for taxes and has never shown any profit from the band.

He says it makes a huge difference in his taxes. He also says Hi to the music nerds. He is sitting next to me as I type this.

as long as you ultimately intend to have a profitable business and not a tax shelter.

Right. That's why the IRS originally had that "2 out of the last 5 years" rule. You got a free pass for three years, then you were out of the game. But the courts said that just because you're a lousy businessman, doesn't mean that you're not running a legitimate business and they threw the rule out.