Can i deduct my talent agency fees?

Forum|Forum|7 years ago
June 3, 2019
5 replies
120 views

I pay 4% of my Base Salary to the Talent Agency that negotiates contract, aides in reemployment,etc

TurboTax Deluxe Online

Best answer by Marketstar

Yes, if talent agency fees are "ordinary and necessary" expenses for your industry.

Per the IRS: To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your trade or business. A necessary expense is one that is helpful and appropriate for your trade or business. An expense does not have to be indispensable to be considered necessary.

See https://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Deducting-Business-Expenses

MarketstarAnswer

Level 12

Yes, if talent agency fees are "ordinary and necessary" expenses for your industry.

See https://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Deducting-Business-Expenses

GC_ET_B

Level 2

Further Question-

I am a professional actor, and receive W-2 from several different theaters and payroll companies for work in commercials, and television. I also pay a significant amount (10% for Film, etc., 20% for print) to my agent. However since I receive W-2s,( thus an employee rather than self employed) and it won't recognize my agent fees and union dues (both of which are significant this year) as business expenses.

Advice?

LeonardS

Alumni - Intuit

These fees are not deductible as an employee. Because your income is reported on a W-2 your are correct that you are an employee rather than self-employed. You can not deduct these expenses as a self-employed business deduction because you are not operating a business. Prior to the Tax Cut and Jobs Act of 2017 these expenses could have been deducted as itemized expenses subject to the 2% limit.

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