130 shows in 2018 and doing my taxes

My website calendar says I played 130 shows last year.

I counted because last night I started putting together my 2018 taxes.

I want to tell you what happened about my audit by the State of Minnesota in case I never ended that saga.

I was audited for the years 2015,16,17.

They were questioning my use of deductions for my business, saying my music career was a hobby so no deductions would be allowed.

I disabused them of that thinking immediately.

Over the three years, with the making of two albums, four Europe tours, many US tours with full band, I had claimed one hundred thousand dollars in business expenses.

They said I would have to pay the taxes on all of that after all.

It would have been a bummer. A huge bummer.

I represented myself because my accountant..for my music business...wanted a three thousand dollar retainer to help me defend her work. Thanks a lot accountant.

I was able to get them to see that I am a full time hard working entrepreneur in my field of writing and music.

And, I was able to get them to accept all of my three years of many expenses.

The only thing in the end that I have to pay is $500 for the GoFundMe album campaign I did.

They say that because making albums is my business then any money given to me to help me make the album is income.

So, this chapter is closing.

I am calling their office today to hopefully set up a payment plan for this year to pay off the $500 because I have $50 right now in my savings account.

And, I'm starting my taxes for 2018 now.

I'm hoping to do the forms myself this year.

I definitely learned a lot from defending myself to the tax people.

I'm hoping to use my newly acquired tax knowledge to save the cost of an accountant this year.

Wish me luck!

What I discovered last night is that I played 130 shows and my income for 2018 rose above the poverty line.

Teaching lessons was less than a quarter of my income.

Three quarters or more was revenue from shows and sales of books and music.

Real progress.

 

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