[JPS]

Well, DaBaSsTaRd, my numbers were just a bit off. Any business, either Sole Propritor, Corporation or Partnership, as well as a “Self-Employed” person can claim the Expense deduction as follows:
Tax Year 2000 $20,000
Tear Year 2001-2 $24,000
Tax Year 2003 $25,000

These numbers have been changing upward almost every year for the past 10 years. Schedule C is the tax form for Self Employment, which would include working musicians. A Label would normally be organized as a Corporation, a Sole Proprietor, or a Partnership and also would qualify for the deduction. However, the self-employed person or the business must have revenues equal to or greater than the expense deduction, which is the main issue.

So even a working musician who files a Schedule C Self-Employment form can expense up to $24,000 in equipment per year and every year, provided he has $24,000 in taxable revenues every year. This is just general tax information, for specific tax advice, you best visit an accountant.