by Jerry Bazata
April 15, 2011. This is, for many DJs, the dreaded day when “The Tax Man Cometh.” To be adequately prepared for him, here are some important items to consider:
- Have you accurately recorded all your travel mileage for meetings with potential clients and new business development? The current deduction rate is $0.55 per mile.
- The cost of meals, airline tickets, taxis, and hotel rooms for trade shows are deductible; however your losses at the blackjack table are not.
- Any lighting or sound equipment, electronics, software, accessories or other items you purchased for your business in 2011 can be written off up to a limit of $500,000 (and who has that much to spend?). This is because of enhanced small business expensing (Section 179 expensing).
- If you legally started your DJ business in 2011, you may be eligible for a one time deduction of $10,000 as a business start up expense.
- If you have any trade magazine or newspaper subscriptions expiring in January, 2012, you might want to consider renewing them earlier and taking the full deduction in 2011 to help offset increased income.
- The cost of computer software in now full deductible and does not have to be depreciated over three years. You may want to upgrade or purchase new software before the end of the year.
To learn more about tax deductions for small business owners I recommend the following links: http://www.irs.gov/businesses/small/article/0,,id=109807,00.html and http://www.bankrate.com/finance/money-guides/a-dozen-deductions-for-your-small-business-1.aspx
Jerry Bazata – Money Answer Man
Jerry Bazata has over 25 years of experience as a professional mobile entertainer. He is the owner of DJ Jaz Music and Entertainment, and J & J Marketing and Entertainment, a leading consultant to the event planning and music industries. Jerry is also a Vice President in the Global Commercial Bank-Business Banking Group of a global financial institution.
He has been a featured speaker numerous times at the International Bar & Restaurant Show in Las Vegas and the International DJ Expo in Atlantic City. Jerry’s charismatic, humorous and down-to-earth style allows attendees to get educated in an entertaining manner. He provides guidance and inspiration to help DJ business owners achieve their financial goals.
Additionally, Jerry has authored countless articles about financial and marketing success strategies that have appeared in a DJ Times Magazine and financial publications. His insights and forecasting abilities are second to none.
Jerry is a graduate of Sacred Heart University in Connecticut. He holds Bachelor of Administration Banking and Finance, and Bachelor of Administration Marketing degrees as well as an American Institute of Banking Sales Management and Theory Degree.
You can visit Jerry’s website, Maine Disc Jockey or email him at Jerry@mainediscjockey.com.