When you can deduct music downloads

Ask NJMoneyHelp

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Q. I’m a DJ and I often download digital music that I mix with my records. Can I deduct the cost of the music downloads?
— Tune lover

A. If you’re really using the music for your work, we have good news.

Section 162(a) of the Internal Revenue Code allows a deduction for all the ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business, said Gerard Papetti, a certified financial planner and certified public accountant with U.S. Financial Services in Fairfield.

He said Section 262, however, provides that no deduction is allowed for personal, living or family expenses.

“As long as the music downloads are used in your DJ business and not for personal use, the cost is fully deductible against your DJ income,” Papetti said.

Good luck!

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NJMoneyHelp.com presents certain general financial planning principles and advice, but should never be viewed as a substitute for obtaining advice from a personal professional advisor who understands your unique individual circumstances.