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 Post subject: Accounting
PostPosted: Tue Sep 23, 2008 5:57 pm 
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Penguin

Joined: 29 May 2007
Posts: 86
Location: California
Hey there everyone. Ok, long story short, I think I am able to take my act full time, ya know quit the day job type thing. I have a question though for the people who do this for a living (especially DaveV and Paddy).
How do you handle accounting/taxes?
The only way I can think of to even TRY and prove my income is to get receipts from everyone who drops something in my hat. This is an impossiblity for about a million reasons.
So, how do I handle this? Any advice is appeciated.
Thanks yall


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 Post subject:
PostPosted: Tue Sep 23, 2008 8:51 pm 
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born to perform.

Joined: 27 Sep 2007
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Location: Waiting as a final load under a very large set of cups. It is dark......
I WAS WRONG


Last edited by Bicycle12 on Mon Oct 06, 2008 2:23 pm, edited 1 time in total.

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 Post subject:
PostPosted: Wed Sep 24, 2008 5:18 am 
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Location: Milford OH
Bicycle12 wrote:
Correct me if I'm wrong, but I don't believe that you have to pay taxes on your job because busking isn't technically a profession, it is however a way to work for tips. Since tips are inconsistent, there is no way to claim an amout of payment. Again too, it isn't a salary, you are publicly performing and people tip you.


BOY are you ever WRONG! DokGonzo, when you file you have to file your quarterly taxes with a payment. I just put down a number and claim "tips" and pay on that. Truthfully what I put down and the "real world" may not be the same, but I have never been questioned in several years of doing it this way.

A word of caution. Yes I have 2 sets of books, one actual income and the other my "tax" income. Keep the tax income reasonable according to your expenses and deductions. i.e. tax income of $12,000 but you just bought a new Cadilac. Makes them wonder.


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 Post subject:
PostPosted: Mon Oct 06, 2008 1:38 pm 
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Bicycle12 wrote:
Correct me if I'm wrong, but I don't believe that you have to pay taxes on your job because busking isn't technically a profession, it is however a way to work for tips. Since tips are inconsistent, there is no way to claim an amout of payment. Again too, it isn't a salary, you are publicly performing and people tip you.


Legally, you are required to report every thing you make in income- this definitely includes money from busking (especially if that's how you make your money!).


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 Post subject:
PostPosted: Mon Oct 06, 2008 2:23 pm 
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born to perform.

Joined: 27 Sep 2007
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Location: Waiting as a final load under a very large set of cups. It is dark......
Okay. I don't busk, and I'm 13. :lol:

Disregard my initial post, or better yet, I'll delete it.


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 Post subject:
PostPosted: Mon Oct 06, 2008 5:45 pm 
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born to perform.

Joined: 20 Apr 2008
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Location: Penguin's Most Feared Intellect
Bicycle12 wrote:
I WAS WRONG


lmao


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 Post subject:
PostPosted: Mon Jan 26, 2009 1:56 pm 
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Joined: 13 Oct 2006
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Bicycle12 wrote:
Okay. I don't busk, and I'm 13. :lol:

Disregard my initial post, or better yet, I'll delete it.

The guy asking the question busks enough to consider doing it to support himself. Why would you, a 13 year old boy with zero busking experience, try to offer him advice on how to handle accounting and taxation on busking income...lol kids...at least you are funny lol...


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 Post subject:
PostPosted: Mon Jan 26, 2009 3:13 pm 
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Emperor Penguin

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Paddy has some very good advice. I'd also say to check state laws though. It will give you some very helpful information in setting up a business as well as the laws on taxation. If you do a quick google search, you will find the information that you need.


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 Post subject:
PostPosted: Mon Jan 26, 2009 5:04 pm 
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Joined: 05 Sep 2007
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Legally, you're supposed to report all the money you make. Honestly, there's no way for them to tell without an audit. Provided the items you've bought don't exceed your reported income, and you don't have any conspicuous piles of money, there's no way for them to tell.


A thing you could do that the IRS would surely frown upon:
Start a magic business, where people call you up, and you perform for kids shows, celebrations, and get togethers. That sorta thing.
Business expenses are tax deductable. All the magic gear you buy helps your magic act, right?
Thus, your magic supplies are tax deductable. This much the IRS would be ok with; what you COULD do, though, that they would not like, is to busk on the side. You could use your performance money and tax deduction money to pay for things like rent, a car, food, and whatever little expenses you have. Then, using the unreported busking gains, you buy expendable things; a lobster dinner, a trip to the movies, topping off the gas tank, and such. Since these things are expendable, they can't be demonstrated without a reciept, which you'll have obviously thrown out.
Of course, Tax evasion is serious business, I'm sure you wouldn't be so heinous as to choose this course of action.


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