[da BaSsTaRd!]

working musicians can deduct 100% of their equipment purchases on schedule C up to a limit of $??,000 (its high - something like $25,000).

i doubt that technically this would apply to recording studios, but you could claim that you're a label. a label can be considered the same as a working musician (label + musician working toward a common goal makes them extremely similar). in that case, you can use the deduction. if you get audited, you need to show a) what percentage of your income came from label vs. regular customers and b) you should show some revenue for your label (as opposed to income - you can have revenue and still show a loss).