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		*Job Search*
On This Page Photo and Video Resumes Demos Showcasing Actors, Directors, Producers Comedians Musicians Agents Agent Fees and Commissions In Actor Speak Most of the expenses that an actor has to take on for their career are the result of job search activities. The need for pictures and resumes, as well as driving to auditions are obviously no different from preparing a resume and seeking a job interview. You should be aware that training for a new field of employment is NOT deductible however, while continuing your training for further advancement in your current field of employment is. In other words, if I was a policeman, studying to become an attorney, the cost of my law degree would not be deductible. But those same law classes, if taken to receive a degree and earn a promotion within the police department, would be a legitimate deduction. Agent Fees and Commissions Fees paid to an agent (artist's representative) are allowable business expenses. Agent fees are usually 10 percent of gross for any jobs secured by the agent. These fees are generally limited to 10 percent by SAG, AFTRA, AEA, etc. Some foreign productions and/or managers may receive up to 15 percent commissions. Most performing artists have contracts with their agent or representative, but this is not mandatory. An oral agreement is sometimes used since the rate is standard. Residuals are subject to the 10 percent commission only if they are "over scale." Therefore, minor amounts will not result in fees to agents. When the residuals are subject to agent fees, the commission is paid to the agent who obtained the work, not the agent at the time of the payment. The agent generally does not issue a yearend statement to the performer. This is to avoid any appearance of being the employer. Most payments (wages or fees) which are subject to commissions are paid by the employer directly to the agent. The agent keeps his/her fee and pays the difference to the performer. Business management fees are not standard. They may vary from 5 to 15 percent of gross or they may be a flat monthly fee. Business management fees are allowable in proportion to the percentage of business use. Many actors have their manager pay all their personal bills and handle their personal business. Facts and circumstances will determine the percentage of business use. *Back to Topics*		In the Words of the IRS: Photo and Video Resumes Photo and video resumes are generally composites of other work the taxpayer has done. They are used to show potential employers the taxpayers' skills and versatility. These resumes generally include a reasonable expense for taping, editing, and copying. It is generally expected that they would be reasonable expenses incurred every year. Demos In contrast, we have the "demo." Unlike a demo which is shopped to sell a "production" (song, video, etc.), this demo is used to promote the talents of the taxpayer to potential employers. Some of these demos are like full productions in cost and expended effort, except they are not made for sale. When a major expense is incurred to produce "demos," it must be determined if these assets have a useful life of more than one year. These tapes (video or audio) are used for job seeking or marketing the taxpayer and are, therefore, not subject to IRC section 263A. They are, however, IRC section 1231 assets; used in a trade or business, with a useful life of over one year, and of a character which is subject to depreciation under IRC section 167. It is, therefore, necessary to determine the useful life of these demos. This can be done by checking when a replacement demo was produced. By verifying that the demo was actually submitted (or shopped), it may be determined that the demo is still being submitted and has no determinable useful life. Generally audiotapes are used from 1-4 years and videos from 2-5 years. This may vary with the nature and subject matter recorded. Showcasing Another way performers try to obtain employment is by "showcasing." This involves staging performances without compensation, or even at a cost to the performer. Actors, Directors, Producers Many showcase opportunities exist for actors, directors, and producers to exhibit their skills. Frequently, a producer or other entrepreneur will arrange a production consisting of unrelated one scene performances. The individuals who wish to demonstrate their skills can pay the producer to perform one of the scenes. Depending on the location, expected attendance, and history of success, the cost to the individual actor can run from $35 to $200. A director may pay for the entire scene and recruit his or her own actors. This generally costs the director up to $1,000. The director may recover some of his or her expenses from the actors or he or she may absorb the cost. Many acting coaches or teachers highlight each series of workshops with a public performance. The coaches invite directors and producers to attend the performance. These performances are considered another opportunity for the actors to demonstrate their skills. Comedians Similar showcasing opportunities exist in the area of stand-up comedy. Many comedy clubs offer 20 minute to one hour segments for a little or no fee. This usually runs from $50 to $500 depending on the reputation of the club. Musicians Showcasing opportunities for musicians can create another source of income. Commonly, musicians are provided an opportunity to perform in a club with only a moderate fee or without a fee. In exchange for performing, the musician is expected to encourage his or her fans to attend the performance. The musician is then entitled to a percentage of the door. Agents Some agents are now charging a fee for a performer to audition. These fees are generally around $35. If the performer is successful, the agent will then represent that performer. This is a new development in the entertainment industry and not all agents believe it to be ethical. It is, however, acceptable for the performer to pay these fees to acquire representation or employment. Showcasing Expenses Showcasing expenses can be verified by canceled checks along with contracts, letters of agreement, or other documentary evidence of the arrangement between the performer and the producer or club. In the absence of documentary evidence, a third party contact can verify the nature of the expense and any income received by the performer. When a performer pays an exceptionally high fee to perform, the probability of the performer receiving a percentage of the door must be considered. *Back to Topics*

Job Search

On This Page

Photo and Video Resumes
Demos
Showcasing
Actors, Directors, Producers
Comedians
Musicians
Agents
Agent Fees and Commissions

In Actor Speak

Most of the expenses that an actor has to take on for their career are the result of job search activities.

The need for pictures and resumes, as well as driving to auditions are obviously no different from preparing a resume and seeking a job interview.

You should be aware that training for a new field of employment is NOT deductible however, while continuing your training for further advancement in your current field of employment is.

In other words, if I was a policeman, studying to become an attorney, the cost of my law degree would not be deductible. But those same law classes, if taken to receive a degree and earn a promotion within the police department, would be a legitimate deduction.

Agent Fees and Commissions

Fees paid to an agent (artist's representative) are allowable business expenses.

Agent fees are usually 10 percent of gross for any jobs secured by the agent. These fees are generally limited to 10 percent by SAG, AFTRA, AEA, etc. Some foreign productions and/or managers may receive up to 15 percent commissions.

Most performing artists have contracts with their agent or representative, but this is not mandatory. An oral agreement is sometimes used since the rate is standard. Residuals are subject to the 10 percent commission only if they are "over scale." Therefore, minor amounts will not result in fees to agents. When the residuals are subject to agent fees, the commission is paid to the agent who obtained the work, not the agent at the time of the payment. The agent generally does not issue a yearend statement to the performer. This is to avoid any appearance of being the employer. Most payments (wages or fees) which are subject to commissions are paid by the employer directly to the agent. The agent keeps his/her fee and pays the difference to the performer.

Business management fees are not standard. They may vary from 5 to 15 percent of gross or they may be a flat monthly fee. Business management fees are allowable in proportion to the percentage of business use. Many actors have their manager pay all their personal bills and handle their personal business. Facts and circumstances will determine the percentage of business use.

Back to Topics

In the Words of the IRS:

Photo and Video Resumes

Photo and video resumes are generally composites of other work the taxpayer has done. They are used to show potential employers the taxpayers' skills and versatility. These resumes generally include a reasonable expense for taping, editing, and copying. It is generally expected that they would be reasonable expenses incurred every year.

Demos

In contrast, we have the "demo." Unlike a demo which is shopped to sell a "production" (song, video, etc.), this demo is used to promote the talents of the taxpayer to potential employers. Some of these demos are like full productions in cost and expended effort, except they are not made for sale. When a major expense is incurred to produce "demos," it must be determined if these assets have a useful life of more than one year. These tapes (video or audio) are used for job seeking or marketing the taxpayer and are, therefore, not subject to IRC section 263A. They are, however, IRC section 1231 assets; used in a trade or business, with a useful life of over one year, and of a character which is subject to depreciation under IRC section 167. It is, therefore, necessary to determine the useful life of these demos. This can be done by checking when a replacement demo was produced. By verifying that the demo was actually submitted (or shopped), it may be determined that the demo is still being submitted and has no determinable useful life. Generally audiotapes are used from 1-4 years and videos from 2-5 years. This may vary with the nature and subject matter recorded.

Showcasing

Another way performers try to obtain employment is by "showcasing." This involves staging performances without compensation, or even at a cost to the performer.

Actors, Directors, Producers

Many showcase opportunities exist for actors, directors, and producers to exhibit their skills. Frequently, a producer or other entrepreneur will arrange a production consisting of unrelated one scene performances. The individuals who wish to demonstrate their skills can pay the producer to perform one of the scenes. Depending on the location, expected attendance, and history of success, the cost to the individual actor can run from $35 to $200.

A director may pay for the entire scene and recruit his or her own actors. This generally costs the director up to $1,000. The director may recover some of his or her expenses from the actors or he or she may absorb the cost.

Many acting coaches or teachers highlight each series of workshops with a public performance. The coaches invite directors and producers to attend the performance. These performances are considered another opportunity for the actors to demonstrate their skills.

Comedians

Similar showcasing opportunities exist in the area of stand-up comedy. Many comedy clubs offer 20 minute to one hour segments for a little or no fee. This usually runs from $50 to $500 depending on the reputation of the club.

Musicians

Showcasing opportunities for musicians can create another source of income. Commonly, musicians are provided an opportunity to perform in a club with only a moderate fee or without a fee. In exchange for performing, the musician is expected to encourage his or her fans to attend the performance. The musician is then entitled to a percentage of the door.

Agents

Some agents are now charging a fee for a performer to audition. These fees are generally around $35. If the performer is successful, the agent will then represent that performer. This is a new development in the entertainment industry and not all agents believe it to be ethical. It is, however, acceptable for the performer to pay these fees to acquire representation or employment.

Showcasing Expenses

Showcasing expenses can be verified by canceled checks along with contracts, letters of agreement, or other documentary evidence of the arrangement between the performer and the producer or club. In the absence of documentary evidence, a third party contact can verify the nature of the expense and any income received by the performer.

When a performer pays an exceptionally high fee to perform, the probability of the performer receiving a percentage of the door must be considered.