Rock ‘n’ roll, baby!
What? Yes, it’s tax season. But that’s no reason to sing the blues.
You do know musicians and other artists benefit with select tax benefits, right?
Yes, you certainly do.
According to the Canada Revenue Agency, you can claim your musical instrument if you are a self-employed musician or if your employer requires you to provide your own instrument.
That includes any expenses related to that instrument, including any GST you paid on those expenses. You may even qualify for a rebate of the GST you paid.
According to the Canada Revenue Agency, you can claim the following expenses:
- Capital cost allowance
- Rental fees
Self-employed musicians should also look at the other expenses they incur.
Musicians and other artists are permitted to deduct expenses up to a maximum of 20 per cent of their earnings or $1,000, whichever is less.
The government considers the following expenses applicable the musician’s life:
- Home office or studio expenses
- Legal and accounting fees
- Professional membership and/or union dues
- Travel for concerts, appearances and even auditions
- Publicity and marketing
- Personal care, such as makeup, hair and clothing maintenance, for appearances
- Music lessons or self-improvement courses
- Subscriptions to music magazines
Music is a part of the fabric that warms Canada daily. Where would we be without the amazing work of Tragically Hip, Barenaked Ladies and The Guess Who? And that’s not even counting the men and women who entertain the clubs and coffee houses.
The government recognizes musicians’ contributions and help them in their pursuits by allowing these deductions.
Let us help
A1 Accounting specializes in small business tax returns. We appreciate the opportunity to help musicians get their taxes done. Fill out our contact form or give us a call at 403-226-8297.