Karaoke Forums

I've talked to some people that run their show and they don't worry about the taxes so much because they only make a certain amount of income in that way. I believe that you don't have to pay taxes on your first $3000 dollars or something like that. Anyways, I'm not real sure on any details. I was wondering if any of you guys knew more about this kind of thing, and if you've ever been audited for your service.

I just bought my stuff recently so I'm trying to learn how the business end of it works. I was wondering if anybody's been audited in general for anything? The guy I purchased the equipment off of stated that all songs must be ASCAP certified, which all mine are. What is it though do they have little ASCAP dudes walking around checking on venues to make sure DJs and KJs are legit? It just doesn't seem like that happens.

I'vd had an ASCAP rep come to see me like 5 years ago....a person who was mad that i got hired called them.....So from Denver this guy comes out to our SMALL town and checks us out...Everything was legit....

Just remember it;s the VENUE that has to pay the ASCAP license....and pay the fee.....not you. you do have to have a bus license though.

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Keep it legit.

How many KJ's full and part time have business licences?

The bar I am working at now just told me that I am the first of five KJ's that has a Business licences. The amount of income that we expect this next year I would rather pay the taxes than 5 years from now have the IRS on my door. Ya know what I mean

Absolutley.....then you have nothing to worry about.

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Melly what did ASCAP want with you? What did they ask/want to see etc?

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You can be strange but not a stranger

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Well a little info. Unless they have a warrant they cannot look at your discs or anything else. As for a licence, what licence? Your business licence? Again that is between you and the government office that issued you one, unless on that licence it says it must be displayed. Law enforcement agencies canott even look at your stuff unless they have a warrant. Again organizations who think they have more power than they really do.

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You can be strange but not a stranger

Well, I KNOW that now!! ....i was just starting when this happened....and i guess it showed. You live.....you LEARN.

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do you know what needs to be aquired to get a warrant? So I could turn down an official that would want to look at my equipment if they don't have an official warrant? So Melly this guy didn't show you any kind of Warrant?

I'm actually legit in all areas except maybe the tax area. I just don't really understand how to do it right now with depreciating the equipment and documenting expenses for a tax write off. As of right now I run my karaoke show only periodically for some extra cash. It is one thing I want to start paying attention to. The last thing I need is to have some joe schmoe come take my equipment away from me after busting my tail up to this point to have it.

No he didn't show me a warrant...just his ID from ASCAP, and they called to let us know they were coming. We know it was legit as the Denver office is who venues go thru to get their ASCAP licensing for their Jukeboxes and bands and so forth. I would rather be safe than sorry.

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In order to get a warrant (which is signed by a judge or justice of the peace, depending on the jurisdiction) the official must convince that person that they have reasonable and probable grounds that a crime is being, has been, or about to be committed, and must provide evidence to back his or her allegations. Running a karaoke show is not sufficient grounds for a warrant, however, if during the course of their investigation, they have seen something illegal or statements from witnesses, then that may be enough for a warrant. As for taxes that is a whole other monster. They have their own laws.

Getting a warrant IS NOT as easy as it appears on television shows.

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You can be strange but not a stranger

that's true. I know what you're saying now......a friend of ours is the Deputy D.A. for Pueblo. We were talking about this when we went out to dinner , and he was so disgusted that they did that. He said they use the Fear Factor to get you. I am not so trusting now. But, as i stated before, I WAS new at ALL of this. And you know......obviously from people ASKING this .....i was not the ONLY one who didn't know much either.

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If you're wanting to get an understanding on depreciation and basic small business accounting check with your local colleges, small business administration office, and chamber of commerce. I bet someone will have a short class on small business accounting that will cost next to nothing.

Many of the tax programs have information regarding accounting for a small business and include depreciation calculations. You can use these for a single year, but talking with a tax professional is the way to go for long term planning of your tax bill.

As for the limit, IIRC it was anything more than $600 requires paying taxes. Both social security and income. If your taxes are above a certain amount you are required to pay estimated tax payments on that income to the government each quarter. This year is a non issue for me (upstart business) but next year is going to be a major issue and I'm already planning for that complication.

And actually here in Canada, Revenue Canada will assist you withj some of this and I'm willing to bet the IRS in the US and other Taxation Departments iin the western world will have similar programs. They will work with you.

I have to admit for the most part they are fair. One year I missed a deduction and they found it. Instead of paying I got a refund.

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You can be strange but not a stranger