TAX TIME

[gush]

I've gone over all my tax stuff as our appointment is today. I have a very serious gas problem! My paypal activity is kind of in need of some restraint. OMG!!!

I'm sure there are a lot of folks that spend a lot more but this is just a hobby for me so maybe I should dial it back a bit???

Anybody else experience that sticker shock feeling when you start calculating your expenses at the end of the year???

Somebody help me!!!

 

[AP515]

Do we need to review the rules of acquisition? Rules 1,2, and 6 seem to apply to your situation. If they are met you are doing fine!

1. Never go into debt for a hobby/pastime; never.
2. Never use money that is needed for living expenses; never.
3. If you want it and can afford it, buy it.
4. Trade or buy in the used market to try all the guitars and amps you want, and turn them later if you want, without loosing any money.
5. One in, one out, is useless limiting. Trade what you want, keep what you want.
6. Marry a woman who loves to see you happy (you also need to let her do the things that make her happy). Agree on a budget and stick to it. There is no need to hide or deceive for either of you.
7. Insure the expensive ones.
8. If you learn the other rules correctly, you can have more worth in your gear than you have diverted money. I would make about $10K profit if I sold all my gear at the going used prices and I bought 3 of the most expensive PRSi new.

 

[gush]

Do we need to review the rules of acquisition? Rules 1,2, and 6 seem to apply to your situation. If they are met you are doing fine!

1. Never go into debt for a hobby/pastime; never.
2. Never use money that is needed for living expenses; never.
3. If you want it and can afford it, buy it.
4. Trade or buy in the used market to try all the guitars and amps you want, and turn them later if you want, without loosing any money.
5. One in, one out, is useless limiting. Trade what you want, keep what you want.
6. Marry a woman who loves to see you happy (you also need to let her do the things that make her happy). Agree on a budget and stick to it. There is no need to hide or deceive for either of you.
7. Insure the expensive ones.
8. If you learn the other rules correctly, you can have more worth in your gear than you have diverted money. I would make about $10K profit if I sold all my gear at the going used prices and I bought 3 of the most expensive PRSi new.

This feels like an intervention. LOL

 

[alantig]

I've gone over all my tax stuff as our appointment is today. I have a very serious gas problem! My paypal activity is kind of in need of some restraint. OMG!!!

I'm sure there are a lot of folks that spend a lot more but this is just a hobby for me so maybe I should dial it back a bit???

Anybody else experience that sticker shock feeling when you start calculating your expenses at the end of the year???

Somebody help me!!!

The solution is both simple and, I believe, obvious.

Stop adding that sh*t up at the end of the year. Just enjoy it. Whenever I talk about any of this stuff, somebody almost always says, "Do you have any idea how much money you spend on guitars and concerts and CDs?" Nope. It's the blissfulness of ignorance.

"Blissfulness of ignorance" is also likely to be listed as my cause of death. That and "Wife holding pillow over face".

 

[vchizzle]

Start writing that sh!t off yo!

 

[CVS]

I would never tell my wife but I use the IRS as a "bank" during the year, and then I get a sizable refund at tax time, which I spend on "guess what"!!!!
PS - I would not recommend this approach to anyone (the IRS pays no interest), except for those of you like me (and my wife) who cannot seem to save anything unless you never see the $$$ in the 1st place.

 

[alantig]

I do the same thing w/my bonus when I get one - it's my guitar fund money. Keeps me mostly out of trouble!

 

[AP515]

I would never tell my wife but I use the IRS as a "bank" during the year, and then I get a sizable refund at tax time, which I spend on "guess what"!!!!
PS - I would not recommend this approach to anyone (the IRS pays no interest), except for those of you like me (and my wife) who cannot seem to save anything unless you never see the $$$ in the 1st place.

So your post is saying the IRS savings and loan is a terrible place to save money, but it's the one you use...? Most banks pay almost the same amount since the Fed interest rate has been 0.00% for the last 8 years or more. It is about to change though. Interest rates will rise two or three times this year.

Why not use the option of direct deposit straight to a savings account? You won't see the money.

 

[n24re]

Why not use the option of direct deposit straight to a savings account? You won't see the money.

This is what I do...I have a Car savings account so I pay cash for cars....I make "payments" to this account every paycheck/bonus/stock sales

 

[gush]

I do write everything off which is why I have to know what I spent. It's kind of a shock to know just how much I did spend.

I do blame prs though. I can't stop buying those fabulous pickups and all the other guitar related stuff.

Btw. I just bought another set of 8515s. A guy offered me his out of his new ce24 really cheap. I mean ridiculous cheap. I did the right thing and told him they bring much more than his asking price but he didn't care. Strange.

Hopefully when I open the box they don't say G and B or something like that.

Should get the 5310s next week too.

2017 will be epic!!

 

[Johnny]

5310 neck were my favorite. I think you will love it too.

 

[gush]

This is what I do...I have a Car savings account so I pay cash for cars....I make "payments" to this account every paycheck/bonus/stock sales

This is really smart!

 

[garrett]

I would never tell my wife but I use the IRS as a "bank" during the year, and then I get a sizable refund at tax time, which I spend on "guess what"!!!!
PS - I would not recommend this approach to anyone (the IRS pays no interest), except for those of you like me (and my wife) who cannot seem to save anything unless you never see the $$$ in the 1st place.

My wife likes this method, so I begrudgingly go along with it. But it's true, our bank savings account interest rate is so low it's immaterial, so I guess it's pretty much the same result in the end. Except buying guitars is not on our shared priority list, so I never get to spend it on that.

So your post is saying the IRS savings and loan is a terrible place to save money, but it's the one you use...? Most banks pay almost the same amount since the Fed interest rate has been 0.00% for the last 8 years or more. It is about to change though. Interest rates will rise two or three times this year.

Why not use the option of direct deposit straight to a savings account? You won't see the money.

Yes. Set up your budget for the essentials like bills and groceries plus some discretionary. Take what's left over and skim it off the top. Set up separate savings accounts (I use Amex online savings to keep it out of sight, out of mind; decent 0.9% interest rate) and use automatic transactions on pay days so the money is stashed away before you can miss it.

I also use an app called Acorns, which rounds up your transactions and invests the small change. I haven't made any real market gains, but it's another great way to skim money that you won't miss for later use.


If you make taxable money for playing music, where do you draw the line on what you deduct on your tax return?

 

[gush]

My wife likes this method, so I begrudgingly go along with it. But it's true, our bank savings account interest rate is so low it's immaterial, so I guess it's pretty much the same result in the end. Except buying guitars is not on our shared priority list, so I never get to spend it on that.



Yes. Set up your budget for the essentials like bills and groceries plus some discretionary. Take what's left over and skim it off the top. Set up separate savings accounts (I use Amex online savings to keep it out of sight, out of mind; decent 0.9% interest rate) and use automatic transactions on pay days so the money is stashed away before you can miss it.

I also use an app called Acorns, which rounds up your transactions and invests the small change. I haven't made any real market gains, but it's another great way to skim money that you won't miss for later use.


If you make taxable money for playing music, where do you draw the line on what you deduct on your tax return?

I take every deduction I'm entitled to. Lot of record keeping but it's worth it to me

 

[Dusty Chalk]

Do we need to review the rules of acquisition? Rules 1,2, and 6 seem to apply to your situation. If they are met you are doing fine!

1. Never go into debt for a hobby/pastime; never.
2. Never use money that is needed for living expenses; never.
3. If you want it and can afford it, buy it.
4. Trade or buy in the used market to try all the guitars and amps you want, and turn them later if you want, without loosing any money.
5. One in, one out, is useless limiting. Trade what you want, keep what you want.
6. Marry a woman who loves to see you happy (you also need to let her do the things that make her happy). Agree on a budget and stick to it. There is no need to hide or deceive for either of you.
7. Insure the expensive ones.
8. If you learn the other rules correctly, you can have more worth in your gear than you have diverted money. I would make about $10K profit if I sold all my gear at the going used prices and I bought 3 of the most expensive PRSi new.

Brilliant. Printing it out and pasting it in front of my sheet music.

 

[owickerman]

I had my mother in law killed so I can buy a 509.

 

[kes7u]

I had my mother in law killed so I can buy a 509.

OOPS!! Did I really just 'like' that one???

Kevin

 

[Screamingdaisy]

Years ago someone did one of those "How much does your rig cost" threads, and after totalling it all up I felt a little sick to my stomach.

 

[owickerman]

Years ago someone did one of those "How much does your rig cost" threads, and after totalling it all up I felt a little sick to my stomach.

 

[sergiodeblanc]

2017 will be epic!!

It's already lookin' that way for me too.

I had my mother in law killed so I can buy a 509.

A decent hitman seems like it'd be more expensive than a 509.