Full time musicians/proof of income

[suzanneflower]

In the past I have always used my tax return as proof of income, and recently I was required to provide a profit/loss statement for the last five months as my Tax Return was considered 'outdated' for proof of income.

Sure you should have a running profit and loss thing going, but I find it depressing and would rather just devote a day come tax time.

Wondering what other folks do about this...
What say you??? How do you prove your income?

[rossduclair]

First, see a tax advisor who knows what is called Schedule C. This is the itemized portion of your 1040. A "skilled" tax advisor is the only person you really should take advice from. The only overall accepted method of posting income is by someone sending you a 1099 form of what they paid you. Or, you are issued a W-2 with all the witholding taxes you paid.

Proving income as a musician is really like proving income as a consultant, independent salesperson or independent contractor. But, again, a Tax advisor, who should charge you something for their service, is absolutely your best "next step."

Rock On!

[thump]

I know how you feel; I do my profit & loss once a year for one of my businesses, usually about February so my tax guy can get a little ahead of the crowd. However, I'm not trying to get a loan with this business. If you are, then you need to know that lenders are VERY difficult to deal with since the financial implosion. Speaking from experience, dealing with lenders at any level is the worst kind of head-banging exercise. I have had to provide reams of data and documents, often several times ("I know you sent that to Mr. Y but he is in a different department.") - it is common, and not with just one lender. If you are watching out for yourself, you'll want to apply to at least three, 'cause I can almost guarantee at least one will tell you everything is just fine right up to the time you're ready to sign documents, then "manufacture" some reason for not funding. I feel your pain, Suzanne...