Creative Commons licensed image by 401(K) 2012.

By Jae Gold

In the songwriting business, “reasonable expectation of profit” can be significantly different from other businesses. The Canadian Revenue Agency (CRA) admits that there’s often a longer ramp-up period before a songwriter starts making a profit. That’s why it’s important for artists to work with an accountant who knows the business.

An experienced entertainment accountant knows how to ensure that your losses are allowed by the CRA year after year until you make a profit, or until you stop trying. But let’s hope you keep trying! Jae Gold (rocknrollaccountant.com) has worked with many of the songwriters you hear on radio, and graciously offers his expertise by answering questions posed by S.A.C. members.

What are the most common mistakes made by artists when filing taxes? Missing filing deadlines; under-reporting income; not claiming allowable expenses; claiming expenses that are too personal in nature to…