Author: Scott
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20% Pass Through Deduction for Musicians
You’ve probably heard about the new 20% tax deduction for “Pass Through” entities under the Tax Cuts and Jobs Act (TCJA), and have wondered if musicians qualify. For those who are self-employed (1099, not W-2) here are five frequently asked questions: 1. Do I have to form a corporation in order to qualify for this…
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Musicians, Reduce Your Taxes Without Itemizing
If you used to itemize your tax deductions, chances are you will not be able to do so in 2018 under the new Tax Cuts and Jobs Act (TCJA). While it sounds good that the standard deduction has been increased to $12,000 single and $24,000 married, many musicians are lamenting that they no longer can…
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Bonus Depreciation for Self-Employed Musicians
We’ve written extensively about the loss of tax deductions for W-2 musicians under the new Tax Cuts and Jobs Act (TCJA). For self-employed musicians, however, there are some changes for 2018 which may benefit you if you are an Independent Contractor (1099), Sole Proprietor, or have formed an LLC or Corporation. Specifically, Section 179 has been…
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Tax Bill Passes; Strategies for Musicians
Two weeks ago, we posted how musicians would lose their tax deductions under the proposed tax bill in the Senate. Let me again state that this applies to musicians who take itemized deductions on Schedule A against their W-2 income. For 1099 income or self-employment income reported on Schedule C, there will be little or…
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Musicians, You’re About to Lose Your Tax Deductions
Musicians have been asking me if the new tax bill passed by the House yesterday will have any impact on us. Yes, the legislation, if passed in the Senate, will greatly reduce the ability of professional musicians to deduct many of the expenses we incur in our work. I should state right at the outset…
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How To Be A World Traveler
When asked to describe The Good Life, many musicians include a desire to travel and see the world, often in our top three or four goals. Yet, often we find reasons why it seems impractical or impossible to do so today. My Oberlin roommate, Marty Regan, travels more than anyone I know, and I have always…
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What is Critical and Declining Status?
If you are a participant in the Musicians’ Union Pension, the AFM-EPF, you may have received an email this week that said that thanks to good investment performance, the plan would remain in Critical status but not move into “Critical and Declining” status. The message notes that it is still possible that the plan will…
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What Would Happen If The AFM-EPF Fails?
Pensions offer what may be the ideal source of retirement income. I have written a number of times about the critical status of the American Federation of Musicians Employer Pension Fund (AFM-EPF), a multiemployer pension plan which covers 50,000 professional musicians in America. Given that the Actuaries do not believe that their rehabilitation plan will…
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Reducing the Costs of Healthcare
We may soon see the repeal or defunding of the Affordable Care Act (ACA or “Obamacare”). No matter your political perspective, there is no doubt that rising costs of health care are a significant financial problem for many working musicians, especially those who rely on an individual health insurance plan to cover their family. These…
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Four Investment Themes for 2017
Each November and December, I undertake a complete review of our Premier Wealth Management Portfolio Models and make tactical adjustments for the year ahead. We have five risk levels: Conservative (roughly 35% equities / 65% fixed income), Balanced (50/50), Moderate (60/40), Growth (70/30), and Aggressive (85/15). Our investment process is tactical and contrarian. Each year…
