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Sonny

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First of all, everyone congratulate me on my first year as a full time production sound mixer (no waiting tables, no temping between gigs)!  I just hope I can keep it up in 2007!  It means, however, that I now get to dive into the not so friendly world of self-employment taxes.

On to the point...In October I did a feature on the cheap...really cheap.  The producer is an old friend who gave me my first break and is responsible for getting me the gig that kept me working all last year...I felt like I owed him a favor so I cut him a deal.

<b>Here's the question: Can I claim the difference between my usual rate and the rate I charged as a tax deduction for "investing" my time in the project?</b>

I'm hoping someone here has some experience with this and can tell me:

1) whether this is real or a one way ticket to audit-ville, and

2) if real, what might the IRS be looking for in terms of documentation (invoices with the discount listed, etc.).

Thanks for the input!

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Oh...and by the way: I know this is really a question for a CPA, and I plan on asking one.  I'm just curious if anyone here has any firsthand experience with this kind of deduction.

Also, if anyone knows an accountant whose specialty is entertainment workers in the D.C. area please let me know (the closest I could find was in New York).

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Sonny,

Speak with the folks at Ross and Moncure in Alexandria VA. They understand our business and are worth every dime I pay to Braxton and Steve....

http://www.rossmoncure.com/

Unless the people you worked for are a real, on-paper charitable orginization, you are out of luck. Even if they are a charity, you can only deduct equipment and supplies you provided without charge and mileage at the prevailing rate.

I've been meaning to drop you a note off-group to introduce myself and give you some names of other sound folks in the DC/Baltimore area.

Jim Gilchrist

Cabin John, MD

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Jim,

Thanks for the info.  I got that little tip second hand (a camera op that I worked with claimed to know somebody who did it), so I kinda suspected that it was typical set talk BS.  Thought it was worth asking about, though.

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