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Old 10-07-2014, 11:54 AM   #21
Thinks s/he gets paid by the post
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SEP-IRA is not limited by 401k contributions. Not sure about the other plans being discussed.

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Old 10-08-2014, 11:38 AM   #22
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OK - so still considering how to increase number of deductions there a point at which his primary (I am calling it this because it does not take 40 hours per week and is so time-shared with secondary activities as to blur) job's time/income mandates that it be the "full time" position we usually understand? Is there something specific that makes it this? Some ratio of it to other jobs? What, for instance, if he played "full time" with two different orchestras (this happens sometimes, just not to him, yet) ... both could not be "full time" but would rather be two large jobs with several other smaller ("secondary") jobs ...guess am asking if being a professional musician means the edges between jobs are so ill defined that the old considerations are arguable?

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Old 10-08-2014, 01:13 PM   #23
Thinks s/he gets paid by the post
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A person can have 10 jobs, if that person gets a W2 at say 3 of them, then any expenses associated with those 3 W2 jobs generally cannot be deducted.
The other 7 jobs a person has are the SE (self employment) ones and he would just list as Self employed income (from all 7) = X, expenses from (from all 7) = Y and those are the deductions, and he would have 1 self-401K (my favorite) based on the 7 SE jobs.
Does not matter if the other 3 W2 jobs take 10 hours per week total or 100 hrs/week. Its the classification of the job that determines if he can deduct expenses.
Note: in my 7 SE jobs, I did not include (mentally) the thing we call hobbies, the IRS is clear about hobbies, so if you really don't sell or make $$$ from it, then it might be considered a hobby and not deductible.

There is nothing stopping him in his SE role from buying a new Stradivarius and as long as he could claim he used it mainly in his SE jobs, the occasional use in a W2 job would not hurt the deduction claim.
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Old 10-08-2014, 01:33 PM   #24
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OK - getting it now :-)

If he gets W-2 vice MISC is related, likely to full status of the job - contract, longer term, health care, pension, etc potentially as part of the "package."

He and I were just discussing current situation ... his orchestra has been locked out by management and federal mediator has been agreed to and is negotiating with both sides - he has taken a fill-in job with another orchestra or six weeks or so - we think expenses related to this part time employment can be deducted as any local area gig would be - I've recommended he simply take the GSA food/misc per diem deductions vice trying to pull together every receipt for every meal, etc. He can also deduct mileage for his car for both the relocation and the back/forth to the part time job. He already has additional smaller jobs in the temporary area, so there will be multiple sources.
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Old 10-08-2014, 01:40 PM   #25
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Originally Posted by stephenson View Post
I've recommended he simply take the GSA food/misc per diem deductions vice trying to pull together every receipt for every meal, etc.
That's what I usually do, because I usually spend less on meals than the GSA rate. He may later need to prove that he was in the cities he claims to have been in--lodging, gas, or meal receipts can help with that, so I make it a practice to charge things when I travel for business. Be aware that you can't mix and max--if he goes with actual expenses VS the GSA rate, he has to use that all year.

Also, be sure to look at the rules for "business travel" vs "commuting". "Commuting" costs are not deductible.

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