A to Z of Musician's Deductions in Canada
Author: Brad Howland
First Posted: October, 2000
Musicians are allowed to deduct all expenses incurred to earn income. This list doesn't give every allowable deduction for the self-employed, but it should give you an idea of some special ones for musicians.
- Accounting, legal, and consulting fees
- Musical instrument repairs: new reeds, ligatures, pads, accessories, etc.
- Music supplies not included in B
- Traveling expenses (not auto) to auditions, engagements, etc.
- Union and professional dues; business taxes and licenses
- Allowable expenses for employed musicians calculated on Form T777, and limited to the lessor of 20% of the employment income or $1000. Form T2200 must be filled out by employer.
- Salaries (e.g. accompanist, copyist, substitute, agent's commissions)
- The cost of videotaping or recording performances for preparation or presentation
- The cost of special make-up and hair-styling (performing artist only)
- Meals and entertainment (limited to 50%)
- Advertising and publicity, including photographs and other materials sent to news media and producers
- Insurance premiums on equipment and instruments
- Telephone expenses, including an applicable portion of the cost of a telephone in a residence listed as a business phone
- Concert clothing, cleaning, and alterations
- Music lessons, Training courses (board, lodging, tuition)
- Subscriptions to industry related periodicals (e.g. ITA Journal)
- Depreciation can be claimed on instruments, sheet music, scores, arrangements, transcriptions, office furniture, recordings, automobiles, and computers to the extent that they are used for business purposes
- Bank charges on a business account, interest expenses on a business loan
- Convention expenses
- Delivery, express, freight
- Equipment rental
- Office expenses (postage, stationary, telephone)
- Research costs
- Private health insurance premiums
- Office or studio in the home, including a portion of expenses for mortgage interest, rent, insurance, repairs or maintenance, hydro, heat, water, other utilities, and property taxes (this deduction can't be used to create a business loss)
- Auto expenses, including a portion of expenses for insurance, repairs and maintenance, license fees, gas and oil, car washes, loan interest, auto club membership, and parking