Stepping up on a soapbox and discussing why a tax code should be easy to adminis-
ter, fair to all, and relatively simple, and why the U.S. system is pretty much just the op-
posite of that, is out of the scope of this book. If you’re interested in learning more, just
swing by your local bookseller, where you can find shelves stocked with books on the
subject.
Also, before I get too deep into this chapter, I’d be remiss if I didn’t add in that, pro-
fessionally, I’m a freelance writer, web and graphic designer, and marketing consultant. I’m
not an accountant or lawyer. I’ve been educated in writing, marketing, art and design and
have not taken one hundred plus hours of accounting coursework or the CPA exam. As
such, what follows are simply some thoughts and ideas about taxes and planning for
them.
Taxes are a reality for every business owner, large and small. Professional musicians
included. Since we’re on the topic of taxes, a “businessy” kind of thing, I’ll dispense with
the terms artist; musician; band; act; solo artist; performer, as well as other musical
monikers and stick with “business owner,” for the most part. It should help to streamline
things.
How business owners plan for taxes can mean the difference between starving and
prospering, or worse, landing in front of a judge. Unfortunately, tax planning for many
small business owners means little more than tossing receipts into a box and making an
annual procession to a local strip center retail tax preparer. You can do better. A lot better.
The tax code allows you to take advantage of various deductions. These deductions
reduce your annual gross income, leaving you with your net annual income. This is the