Karaoke Forums

Not to depress anyone early but tax time is around the corner
 
I'm just curious what the other professional KJ's on KS do for tracking business expenses. Particularly what expense categories they track for tax purposes. Some expenses are obvious and others are more difficult to figure out what category they should go into.

Like equipment purchases are a separate category as they are depreciated over several years. But what about cables, RF Modulators, power conditioners, extension cords are they considered equipment or should they go into a separate category.

Anyone willing to share the different categories they track?

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FlipSide Karaoke
Scott

I categorize cables, cords and the like as supplies.  This also includes music, office supplies, sleeves, postage, business cards, etc.

The other separate categories/examples for me:

Advertising - Yellow page ad, banquet hall "preferred vendor" lists, Chamber of Commerce membership, newspaper ads, web domain
Mileage - number of miles, not actual cost
Insurance - off-premise entertainment liability rider on my homeowners

Being home-based, there are other expenses that can be pro-rated based on the square footage including utilities, property taxes, association fee, home repairs.

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Sounds Great! Entertainment
Bartlett, Illinois

My tax consultant has been telling me for a couple of years that I must catagorize my karaoke CDG's under software and must be depreciated. He says audio music can be listed under supplies though. I have always disagreed with him on this issue as I feel music is music and it is where most of my expense dollars go each year. It should be a direct expense item.

How do others catagorize CDG expenses?

Thanks for your input Marty!

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FlipSide Karaoke
Scott