[Dixielandjazz] 1099's

[Steve barbone]

If, for example, you run a 15 piece band and the total band income you
report is less than $20,000, you should have absolutely no trouble at all
zeroing out to no taxable income whether or not you issue 1099's to the
members.

Possible Schedule C deductions include:

15 men at $550 per man per year =   $  8250 in salary deductions.

Office in Home deduction of at least$  3500

Mileage expenses of at least        $  4000

Expenses/supplies at least          $  2000

Depreciation incl.  sec 179         $  1500

Entertainment                       $   250

Uniforms etc.                       $   500

TOTAL Expenses                      $20,000

Taxable music income -0- with no need to file 1099's on anyone.

Just one possible scenario. In most cases such as the above, the IRS has
bigger fish to fry than sticking you with a tax tab of a few thousand
dollars. Unless they can justify their own time/money spent on the case,
they do not bother with us small fry.

On the other hand, if you have a five piece band and one major employer,
that you do 100 gigs for e.g. Showboat Casino, you are going to get one HUGE
SIX FIGURE 1099. In that case, you better damn well issue 1099's to the band
members. This is never any trouble as the guys all are very glad to be
working steady and they have similar write-offs to the above, excepting the
salary deduction.

Cheers,
Steve