Expert: Peter Messaline - 1/3/2011

Question
We have paid for my son to go to acting classes and IPOP in Las Vegas. We live in Sacramento, Ca and have traveled to LA for several auditions (he is on a call back as we speak). Is there a guide somewhere as to what we can claim on our taxes, and what if anything can we claim as expenses on our taxes?

Answer
First of all, do your due diligence by searching "John Robert Powers" for the experiences people have had with his classes and professional attitude.

If your son does make money he should file a tax return, declare his income, and claim his expenses for the year. Even with very low income, having set up a history could be useful when the fees and expenses grow. A IRS-certified tax preparer will be able to advise you how to arrange things most profitably.

Here's the page discussing the easier rules for deducting performer expenses:
http://tinyurl.com/23g6sox
However, this refers to expenses paid out of the child's own money. The stuff you're paying for now is treated like Little League costs.

Before the kid starts making money, you should be ready with a trust account in the child's name -- a Coogan Account -- where the engager pays 15% of the fee for release to the child at eighteen, and another for the rest of the fees.
Here is the SAG book for Young Performers:
http://tinyurl.com/284y4gs
The advice is good, but the rules apply to SAG contracts, and your child won't likely have that protection. Look at pp 22-25 about the business aspects of performing.

Continue to stay on top of things! SAG web sites are very informative, I have found.