The Business Of Acting: Tax Tips For The Working Actor Pt. 2

Tax season will be here before you know it, so yesterday we began looking at some of the expenses that actors can deduct when it's time to itemize their taxes. We shared a number of actors' business expenses yesterday, but here are a few more that you should be keeping track of:

• Theater books, scripts, sheet music, rosin, tapes, records, etc.
• Portion of home phone bill used for business
• Cell phone and internet bills
• Theatrical wardrobe
• Theatrical wardrobe maintenance (dry cleaning, tailoring, etc.)
• Theater, film and concert tickets
• Rehearsal studio bills
• Accompanists
• Home office
• Trade papers
• Work-related travel expenses

When you itemize your taxes, and factor in the appropriate deductions, it can make the difference between owing Uncle Sam and getting refund! So be sure you find a tax professional that can help you will all of your tax filing needs.

On another note, when discussing taxes for the working actor, you may hear some actors pondering whether they should incorporate or not. Did you know that many filmmakers who embark on new film projects set up a corporation for each film they produce? This helps filmmakers protect their personal property in the event of lawsuits during the filmmaking process. This also protects each project from any debts or liabilities incurred by any other films they make.

Well in the 1930s, actors began to follow suit and incorporate themselves, a strategy that's still used widely today. It can be especially useful for actors who want to eventually produce their own projects, or have more control of their money. However before you consider incorporating, it's important that you speak with an attorney. Additionally, due to the amount of money incurred by forming and maintaining a corporation, it's probably best that you wait until you're making on average $200,000 per project and working consistently.

$200,000 per project sounds like a lot of money doesn't it! But don't worry. I know you'll get there eventually. If you're ready to start working towards that goal visit www.EliteCastingNetwork.com and check out our auditions today!