So what exactly is a tax write off? and how does it benefit a label?

[Sad Bunny]

yall always talking about "such and such is a tax write off"

well da fukk that mean?

 

[Fmju]

Also curious about this brehs. One would think it would cost labels more just stringing rappers along then just dropping them or not signing them in the first place

 

[L&HH]

 

[Sad Bunny]

one of you message board music execs must know

 

[Cole Cash]

a label is a business, if your business posted a loss in profit or a major loss, you can report those losses and pay less taxable income, if you can show proof, for example, if i sign bow wow, invest 100,000 into his album and his album only recoups 56,000, then the difference is non taxable because i took a loss.

 

[Sad Bunny]

a label is a business, if your business posted a loss in profit or a major loss, you can report those losses and pay less taxable income, if you can show proof, for example, if i sign bow wow, invest 100,000 into his album and his album only recoups 56,000, then the difference is non taxable because i took a loss.

o okay....so the 44,000 is non-taxed because they lost revenue

 

[Capitol]

I always thought it was just another way of saying a nikka is wack

 

[C-Styles]

I always thought it was just another way of saying a nikka is wack

That TOO!

 

[Loud Still Coolin]

yea never really knew lol but at labels prolonging tax write off rappers and getting them use to the shelves because they rather write tax writeoffs then breach contracts.

:bushes:

i guess it does make sense

 

[stealthbomber]

a label is a business, if your business posted a loss in profit or a major loss, you can report those losses and pay less taxable income, if you can show proof, for example, if i sign bow wow, invest 100,000 into his album and his album only recoups 56,000, then the difference is non taxable because i took a loss.

wouldn't the loss + the drop in tax money paid cancel each other out?

 

[Cole Cash]

wouldn't the loss + the drop in tax money paid cancels each other out?

depends on how you file, but if you made 2 million but lost 50k on an album best believe that -50k is going on the write off no matter what, any amount on your adjusted gross income that subtracts from the irs is a huge help, its why people track donations etc

 

[Piff Perkins]

It cleans your hands of problems, specifically after dropping shyt off in the bushes

 

[Rarely-Wrong Liggins]

a label is a business, if your business posted a loss in profit or a major loss, you can report those losses and pay less taxable income, if you can show proof, for example, if i sign bow wow, invest 100,000 into his album and his album only recoups 56,000, then the difference is non taxable because i took a loss.

My nikka Cole Cash saved a whole meme with this one.

 

[5n0man]

You can use the artist to show that you made an investment and didn't see revenue from it, there for, paying less taxes

 

[shopthatwrecks]

rent for studio= business expense

advertising n communications-business expense

supplies like cds, pens, paper ink etc- business expense


fees paid to accountant, lawyers,consultants session players..since they work for u...when u need em...form 1099misc will be ya best friend..


anytime u travel to do shows promos etc business expense