[Dixielandjazz] 1099's

[Larry Walton Entertainment - St. Louis]

I'm not sure if they do that anymore but a friend who has an Art Studio and 
plays trumpet was audited some years ago and got his home office disallowed 
because he had his trumpet on his desk and the guy asked him why it was on 
his desk. He told them that he practiced occasionally.  He had to build a 
partition so that his studio and practice area was separate.  He then put 
the music section on the music C and the studio on the studio form C.  Kind 
of silly but as I understand it that's how it worked out.

Home offices are a red button that may not be worth putting on your 1040 but 
that's a choice everyone has to make.
Larry.
----- Original Message ----- 
From: <rahberry at comcast.net>
To: "Dixieland Jazz" <Dixielandjazz at ml.islandnet.com>
Sent: Wednesday, February 22, 2006 10:23 AM
Subject: FW: Re: [Dixielandjazz] 1099's


>
> -------------- Forwarded Message: --------------
> From: rahberry at comcast.net
> To: dwlit at cpcug.org
> Subject: Re: [Dixielandjazz] 1099's
> Date: Wed, 22 Feb 2006 16:22:20 +0000
>> I've been advised that one should have the audit, if possible, in the 
>> auditor's
>> office, rather than your own.  That way the auditor can't really go on a 
>> fishing
>> expedition to see what else you have.  You would be advised in advance 
>> what
>> records to bring with you.
>>     Rae Ann (a degree in Accounting. [ Honest!] Also a Master's in Social 
>> Work)
>>
>>  -------------- Original message ----------------------
>> From: dwlit at cpcug.org
>> > I was audited in 1988. I had been told by a tax lawyer musician not to 
>> > be
>> > afraid of the audit, but to consider it an educational opportunity. 
>> > They
>> > weren't out to get me, but to determine whether I needed to be gotten.
>> >
>> > The auditor spent 3 whole days *in my office*, even took receipts with 
>> > her
>> > when she left. She examined literally every cent of *all* my finances. 
>> > She
>> > asked questions, gave me a lot of tips. She found only one taxable
>> > error--a $250 deduction for food bought on the way to various gigs.
>> >
>> > She was very pleasant, if businesslike, quite attractive, and sitting 
>> > as I
>> > was at my computer table while she sat at my desk, I had a nice view of
>> > her veddy nice figure...
>> >
>> > So keep all your receipts, bank and credit card statements. and don't 
>> > be
>> > stupid in claiming deductions. As Steve said, deduct aggressively, but 
>> > I
>> > would add: Be able to explain convincingly how every one of them 
>> > relates
>> > to your music business.
>> >
>> > --Sheik
>> > http://americanmusiccaravan.com
>> >
>> > Steve Barbone wrote:
>> > >
>> > > As Tom Wiggins says, just have the receipts to back up what you 
>> > > deduct and
>> > > declare the income. Be aggressive in you deductions, no harm in that. 
>> > > Then
>> > > if they audit you, they'll just take a few bucks if they disallow. 
>> > > And
>> > > like
>> > > John McLernan says, DO NOT VOLUNTEER INFORMATION JUST ANSWER 
>> > > QUESTIONS
>> > > ABOUT
>> > > WHAT IS ON YOUR AUDIT NOTICE. Do not bring all records, just those 
>> > > which
>> > > they ask for.
>> >
>> >
>> > _______________________________________________
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>>
>>
>
>
>
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