Event planners, DJs, musicians, photographers, and drone operators: equipment, travel, vendor costs and 1099s, second shooters and subcontractors, and estimated taxes.
25 guides, each written by a CPA licensed in the US and Canada.
DJ and entertainment businesses are NOT SSTBs under IRC 199A (performing arts applies to competing athletes and entertainers receiving guaranteed income.
US TaxEvent DJing (playing recorded music) is NOT an SSTB because it is a technical service, not performing arts.
US TaxDrone service businesses are NOT an SSTB. Drones depreciate over 5 years (or 100% bonus in Year 1). FAA Part 107 certification cost is deductible.
US TaxDrone service operators must make quarterly estimated tax payments. Estimated tax planning for drone operators: - Who must pay: any self-employed drone.
US TaxCommercial drones ($1,000-$30,000+) qualify for bonus depreciation. Equipment has a 2-3 year useful replacement cycle, creating recurring depreciation.
US TaxPhotography is generally NOT a specified service trade or business (SSTB) under IRC 199A. The Treasury regulations define.
US TaxPhotographers can deduct equipment insurance (inland marine), general liability, professional liability (E&O), and business auto insurance.
US TaxEvent DJs face strong weekend-heavy, seasonal revenue (70-80% of bookings May through October). Estimated tax patterns for event DJs: Revenue timing: -.
US TaxA retainer or planning deposit received in January for a June wedding is taxable income in January (under the cash method).
US TaxEstimated tax rules for musicians: 1. Most music income is subject to self-employment tax.
US TaxPhotographers earn irregular income concentrated in peak seasons (spring-fall for weddings, holiday season for portraits).
US TaxEvent DJs deduct speakers ($1,000-$10,000), controllers and mixers, lighting rigs, music licensing fees, vehicle expenses for hauling gear, and marketing.
US TaxEvent DJ revenue is heavily seasonal, with 55-65% concentrated in May through October (wedding season). Event DJ seasonal tax planning: Monthly revenue.
US TaxEvent DJ deductions include sound equipment ($5,000-$30,000, Section 179 eligible), lighting ($2,000-$15,000), music subscriptions.
US TaxEvent planning businesses face a classification question: is event planning consulting (SSTB) or a service trade (non-SSTB)?
US TaxEvent planners can deduct vendor costs paid on behalf of clients, travel to venues and events, marketing expenses, and a home office. The gross vs.
US TaxEvent planners hire day-of coordinators, setup crews, and support staff. Day-of coordinators: The classification depends on the relationship.
US TaxSSTB analysis for music/entertainment income: - Live performance income: SSTB (performing arts). This includes concert fees.
US TaxMusicians deduct instruments under Section 179, home studio under IRC 280A, touring expenses including travel and meals, and agent/manager commissions.
US TaxEvent planners with variable income from seasonal events can shelter significant amounts through the Solo 401(k). A solo event planner (no W-2 employees.
US TaxRetirement plan considerations for musicians: 1. Solo 401(k) is the best fit for most musicians. Solo 401(k) is the best fit.
US TaxPhotographers are not SSTBs, so QBI is available at all income levels. Most solo photographers use the Solo 401(k) because it allows both employee.
US TaxWedding and event photographers who hire second shooters must classify them correctly and issue 1099-NECs. Most second shooters are independent.
US TaxPhotographers can deduct cameras, lenses, lighting, editing software, travel, home studio costs, and marketing expenses.
US TaxPhotographers who travel for destination weddings, on-location shoots, and portfolio-building trips can deduct travel expenses.