Tax season is closing in. I was happy to learn in that regard that I may be able to claim a deduction for the money I put into making my CD, "Sea of Love." Apparently, I am now an entrepreneur or business person, something I thought I would never be.
This arises simply from the fact that I have put the CD up for sale. For the tax break to work, I have to make a good faith and documented effort to sell product. And that I have done. "CD Baby" was a break through in the merchandising area. For a mere $35 they house hard copies of the CD and send them out for me. And they distribute the CD through the digital network. At present "Sea of Love" appears on the following sites:
I have a page also on GarageBand and of course my own site at BandCamp, made by Sean McCue.
Because two old friends bought three copies of "Sea," I will not be able to claim a total loss on my investment (venture capital, as it were); still having sold something should serve to document my status as a true entrepreneur.
One person I spoke with said artist type people take this sort of deduction all the time and sometimes for years. As long as they get their stuff out there and try to sell at least, they can claim deductions for supplies even though they don’t sell anything.