![]() If you are a sole proprietor, your health insurance premiums are fully deductible. However, there are substantial penalties for underpayment. Taxpayers are not required by law to make these payments. ![]() Quarterly payments are due each April 15, June 15, September 15 and January 15. Ask your tax accountant if Section 179 is best for you. Qualifying items must be personal property such as musical instruments, business vehicles and equipment, or software. In other words, items that once had to be depreciated over several years can now be deducted all at once. Section 179 of the tax code enables you to deduct, in the year of purchase, the full cost of certain items that have a useful life of more than one year. Just figure out how much it's worth as a used instrument today, and depreciate its value.ĭo you have a room set aside just for teaching music lessons? Figure out the square footage of the space, and take the home office deduction. Did you also know that you can deduct the instrument you already own? Yep, it's true. Deducting these purchases on your tax form can make a dramatic difference on your tax bill. Save your receipts for big purchases like a piano or a violin. Your use of these resources during a music lesson is further justification for their deduction.ĭid you go see a concert last year? Find that receipt. These resources are helping you to grow as a musician, and increasing your skill as a teacher. Keep your receipt for CD's and DVD's you buy for yourself as well. Keep your receipts for the music books you buy for yourself. Every time you make a trip to a students home, pull the calendar out and record the mileage. This guide will help find deductions that you may have overlooked in the past, and help you keep a little more of what you work so hard to get.ĭo you travel to and from private music students homes? All this traveling can add up to big savings at tax time, so keep a pocket calendar in your car. ![]() Good income tax record keeping can be just as important a goal as growing or maintaining your private lesson studio. ![]()
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