Expert: Kitty Kavey - 4/7/2008

Question
I have twin girls who are 6-they have been in modeling/acting for a year now...they haven't got a paying job yet...but we have been on several trips to LA on auditions. Can't we claim our expenses/loss from the trips and such on our taxes? This is what we have been told.

Answer
There are a couple books that you might find helpful: The New Tax Guide for Performers, Writers, Directors, Designers and Other Show Biz Folk by R. Brendan Hanlon, and Tax Deductions A to Z for Writers, Artists, and Performers by Anne Skalka.

Yes, it is likely that your CPA or tax preparer will be able to take numerous deductions for you.  The IRS.gov website has a section for the entertainment industry: http://www.irs.gov/businesses/small/industries/content/0,,id=100767,00.html

and you can contact them directly if you file your taxes on your own and need to ask questions: Toll-Free, 1-800-829-1040
Hours of Operation: Monday – Friday, 7:00 a.m. – 10:00 p.m.

So long as you have your receipts and keep some sort of a record book of the trips you take with your daughters, it should be fine to deduct part or most of the expenses.  There are accountants and such who specialize in doing taxes for entertainers - so in the future when your daughters are earning money as well, you will most likely benefit from using a tax professional who specializes in the entertainment/modeling field.

Good luck to you,
~Kitty