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Tax questions

Discussion in 'Studio Lounge' started by swingdoc, Jul 17, 2003.

  1. swingdoc

    swingdoc Guest

    OK, so I've built a studio over a couple years, and now am deciding to go "real business" with it. Before, was all projects, word of mouth referrals, etc. Wanted to have a few years experience before actually "going pro".

    I believe I understand the notion of gear write-offs as business expenses...Is it that gear can be claimed at 1/7th of its cost per year over 7 years....correct? So for example...a unit costing $700...I can claim $100 a year for 7 years....??

    Also, if I bought equipment say 3 years ago, but am just starting the business now, am I still able to claim its' costs....just that I've lost three years??
    so for example...that $700 piece bought 3 years ago, now can claim $100 a year but just for the next 4 years??

    I know....get an accountant / tax lawyer...
    I will, but just trying to get these ?'s started.
  2. Don Schenk

    Don Schenk Active Member

    Jan 10, 2003
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    It can be more complicated than that, and it can depend upon whether the equipment purchased was new or use, and on whether or not you sold an old piece of equipment verses trading it in on new.

    Spend a hundred bucks and have a CPA set up a depreciation schedule for you. It is money well spent. The CPA can also set up a simple record keeping system for you so you will have all the necessary info right at your fingertips come tax time.

    Would you want an amateur engineer designing a new mic for you? You don't want an amatuer tax person tring to figure your taxes.

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