[Beatles]

Just curious if anybody here keeps track of their income and expenses for tax purposes. Things like write offs(gear/travel/etc) against income. Anyone doing this so they can write off the cost of buying new gear? Is it worth it?

 

[Accept2]

I did for about 5 years, but never got audited. I havent needed to do it for many years though, because there is no more income. In some cases you actually have to report the income and expenses because if you get paid for playing where the government is involved in the promotion they will issue you a T slip to report the payments. If you dont include those payments in your return they will audit you.........

 

[Beatles]

Paul..

That's exactly what I thought. Too much agro for what it's worth. Thanks for pointing out the RRSP contribution limits.....never thought of that.

 

[ronmac]

There is no simple answer, but there is a Revenue Canada circular with an official explanation to your answer.

http://www.cra-arc.gc.ca/E/pub/tp/it525r-consolid/it525r-consolid-e.html

 

[Beatles]

There is no simple answer, but there is a Revenue Canada circular with an official explanation to your answer.

Well those examples sure look like my music income earned :frown:

 

[david henman]

...in my band, we keep all receipts even remotely related to performing etc.

as well, i include the rent for my studio, and all related costs.

in february/march, we turn everything over to a savvy but conscienciously "above board" accountant.

it has worked out very well.

-dh

 

[keefsdad]

I've done it off and on for years, always declaring a loss, with no problem at all. As long as it's not a huge amount, I don't think they care.

 

[david henman]

I've done it off and on for years, always declaring a loss, with no problem at all. As long as it's not a huge amount, I don't think they care.

...that's my take, as well.

-dh

 

[washburned]

here's what can happen

A Long time ago in a land far away I played with a fellow at a certain gov't affiliated watering hole on a regular basis. We were a four piece band playing for union scale plus, i.e we did a five way split, two for the leader and one for each of the other three guys.
The establishment paid the leader by cheque, and he brought enough cash to pay the three sidemen. So the folks at revenue Canada audited the gov't institution and duly noted cheques made out to our leader going back a few years. Being the curious types they are,they decided to audit his taxes and, guess what? no mention of said income: he was ordered to pay delinquent taxes and interest, and fines totalling $5000.00; worst of it was he paid our share too, on money he didn't get!