Expert: Kitty Kavey - 2/11/2006

Question
Hello Ms Kavey
I am starting to complete the tax forms with my son for the first year; he just started his modeling career last year at 17 years old (now 18). I think I should prob. use the acrrual system, as he had start up expenses and did not get paid on some jobs until this year. What is your advice? Also, I see some sites say that gym membership and hair cuts and tanning are deductible expenses on the schedule C, but the IRS site says "upkeep" for the entertainment business is not deductible. Any ideas on that? Is modeling considered the "entertainment" business? Any help would be very, very appreciated!

Answer
If by this year you mean 2005, yes you would be paying taxes on what he made in 2005, whether the job occured prior to that or not - since you pay when you get it.  Modeling is considered a part of the entertainment business.  The IRS states that "No deduction is allowed for wardrobe, general make-up, or hair styles for auditions, job interviews, or 'to maintain an image'."  They also include gym memberships, and anything that could be considered something of a personal nature (such as tanning).  There are entertainment tax accountants who can usually be found advertising in the trade papers this time of year, or you can contact the IRS directly at 1-800-829-1040 for more information on your particular situation.
Good luck to you and your son,
~Kitty