Business Entertainment Expenses Tax Inform

Topic 512

Entertainment expenses that are both ordinary and necessary in carrying on a trade or business may be deductible if they meet one of the two tests discussed in Publication 463.

You must have records to prove the business purpose (under the applicable test) and the amount of each expense, the date and place of the entertainment, and the business relationship of the persons entertained. For further information on record keeping, refer to Topic 305.

Generally, only 50% of food and beverage ("meal") and entertainment expenses are allowed as a deduction. For exceptions to the 50% limitation, refer to Publication 463, Travel, Entertainment, Gift and Car Expenses.

If you are an employee whose deductible business entertainment expenses are fully reimbursed under an accountable plan, the reimbursement should not be included in your wages on Form W-2 (PDF) and you should not deduct the expenses. If you are not reimbursed under an accountable plan, your expenses exceed the reimbursement you received under an accountable plan, or you are not reimbursed, use Form 2106 (PDF), or if you meet the conditions, Form 2106-EZ (PDF) to report business entertainment expenses. These expenses, including expenses that exceed the reimbursement under an accountable plan, are carried over to Form 1040, Schedule A (PDF), and are generally subject to the 2% of adjusted gross income limit. Refer to Topic 508 for more information on the 2% limit, Topic 305 for more information on record keeping requirements, and Publication 463 for a definition of accountable and nonaccountable plans.

If you are self–employed, use Form 1040, Schedule C (PDF), or Form 1040, Schedule C-EZ (PDF), or if you are a farmer, use Form 1040, Schedule F (PDF) to deduct these expenses.

For more information on meal or entertainment expenses, refer to Publication 463

 

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Artist Recording Agreement

This Artist Recording Agreement, also referred to as an Artist Recording Contract, is used by an independent record company to enter into a contractual agreement with an individual, group or band for their exclusive services as a recording artist for that record label. Instead of a traditional record royalty based on the sales price of the record, this agreement pays an artist a percentage of the net profits of the sale of the record. This makes it easier for a small label to calculate what the artist is paid after all expenses are paid back to the record label from sales of the record.

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Digital Music Revenues Set To Soar, Says Sony BMG

 

By Laurie Sullivan , TechWeb Technology News

An upswing in revenue from digital track and album sales at Sony BMG Music Entertainment has led to some unusual partnerships with telecommunication carriers, mobile handset makers and social network sites. What's more, digital sales and service now account for around 20 percent of the company's digital music division, said Thomas Hesse, president of Global Digital Business at Sony BMG Music Entertainment, in an interview Wednesday at the Digital Music Forum West in Hollywood.

That percentage should rise "significantly" when someone figures out how to make platforms interoperable. Hesse expects digital revenue to rise between 50 percent and 60 percent in 2006.

One thing's certain, with the rise in digital sales, music labels now must deliver a multitude of digital content to a variety of distribution outlets. Traditionally, music sold through one channel, retail stores. Now, ringtones, videos and songs launch on iTunes, Rhapsody, MTV, and other sites, and all must coincide with artist appearances and the launch of physical media on CDs in stores.

Supporting the digital products are new partnerships with Yahoo, Google, RealNetworks, MySpace, Cingular, Verizon, Sprint, Motorola, Sony Ericsson, Nokia and many others.

On average, 4.1 million, or 2.1 percent of the 190 million U.S. cellular subscribers, used their mobile phone as a music player in August, according to M:Metrics Inc. The research firm estimates that number slides in Europe to 649,490.

At Sony BMG, digital music sales contributed 19 percent to U.S. revenues during the first six months in 2006. Korea led the way with 32 percent; Japan, 11 percent; Italy, 10 percent; United Kingdom, 8 percent; France, 5 percent; and Germany 4 percent.

Hesse said $1 in every $5 that Sony BMG generates in U.S. music sales now comes from digital content. The percentages should rise in 2007. The handset makers and carriers will contribute to music industry revenues next year, as more digital music content makes its way to the phone. But while Hesse pointed toward opportunities with social network sites, a lack of copyright enforcement on sites like MySpace, YouTube and others remains an issue. Only 6 percent of U.S. consumers use legitimate sites to download music, he said.

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John kellogg

John Kellogg is an entertainment attorney, performer, and Assistant Chair of the Music Business/Management Department at Berklee College of Music. He is also a practicing lawyer, who for many years represented the R&B group The O'Jays, and who currently represents singer Gerald Levert as well as emerging artists. Kellogg also performed and recorded with the R&B/funk group Cameo before attending law school.

John Kellogg, Professor of Music Business/Management at Berklee College of Music, discusses matters of strategic interest to anyone starting out in the music industry, whether on the music or the business side. He addresses what the industry is likely to look like tomorrow and how that will change who gets paid and for what, how to use new media methods to get your music to your fans, how to network in the industry effectively, when you need a lawyer, and how to protect and monetize the songs you worked so hard on writing.

http://entertainmentbusinessstrategies.blogspot.com/

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Top selling artist updated 17 July 2007

Artist
Units(millions)
Beatles, The
170
Presley, Elvis
118.5
Brooks, Garth
116
Led Zeppelin
109.5
Eagles
91
Joel, Billy
79.5
Pink Floyd
73.5
Streisand, Barbra
71
John, Elton
69.5
AC/DC
68
Rolling Stones, The
66
Strait, George
65.5
Aerosmith
65.5
Madonna
63
Springsteen, Bruce
62.5
Carey, Mariah
61.5
Jackson, Michael
60.5
Metallica
57
Van Halen
56.5
Houston, Whitney
54
U2
50.5
Rogers, Kenny
50.5
Dion, Celine
49
Fleetwood Mac
48.5
Kenny G
48
Diamond, Neil
48
Twain, Shania
47
Alabama
46
Journey
45
Santana
43
Clapton, Eric
42
Jackson, Alan
42
Seger, Bob And The Silver Bullet Band
40
Prince
39.5
Guns 'N Roses
38.5
Simon & Garfunkel
38.5
Chicago
38
McEntire, Reba
38
Backstreet Boys
37
Stewart, Rod
37
Dylan, Bob
37
Foreigner
36.5
2 Pac
36.5
Def Leppard
35
Nelson, Willie
35
Collins, Phil
33.5
Bon Jovi
33
Queen
32.5
Denver, John
32.5
Taylor, James
32.5
Doors, The
32
Kelly, R.
32
McGraw, Tim
31
Spears, Britney
31
Boston
31
Matthews, Dave Band
31
Dixie Chicks
30.5
Ronstadt, Linda
30
Pearl Jam
30
Petty, Tom & The Heartbreakers
28.5
Osbourne, Ozzy
28.25
Lynyrd Skynyrd
28
Bolton, Michael
28
'N Sync
28
Mellencamp, John
27.5
Boyz II Men
27
Mannheim Steamroller
27
Eminem
27
Manilow, Barry
27
Brooks & Dunn
26
Creedence Clearwater Revival
26
Bee Gees
26
Enya
26
Jackson, Janet
26
Sinatra, Frank
25.5
Rush
25
Nirvana
25
Hill, Faith
25
Jay-Z
25
ZZ Top
25
Vandross, Luther
24.5
Carpenters, The
24.5
Miller, Steve Band
24.5
Creed
24
Motley Crue
23.5
Earth, Wind & Fire
23.5
Cars, The
23.5
Gill, Vince
23.5
Buffett, Jimmy
23
Police, The
22.5
Sade
22.5
Hendrix, Jimi
22
Doobie Brothers
22
Richie, Lionel
22
Keith, Toby
22
Green Day
22
TLC
22
Beastie Boys
22
Outkast
22
R.E.O. Speedwagon
22

List of certifications

Currently, the normal RIAA certifications for albums are:
500,000 units: Gold album.
1,000,000 units: Platinum album.
2,000,000 units: Multi-Platinum album.
10,000,000 units: Diamond album.

Recording Industry Association of America

In the United States, the Recording Industry Association of America awards certification based on the number of albums and singles sold through retail and other ancillary markets.[1] (Some other countries have similar schemes. See Music recording sales certification.) Certification is not automatic; for an award to be made, the record label must pay a fee to have the sales of the recording audited. The audit is conducted against unit shipments (most often an artists' royalty statement is used), which includes albums sold directly to retailers and one-stops, direct to consumer sales (music clubs & mail order) and other outlets. Shipments that could potentially be returned to the label can not be counted.
Contrary to popular belief, Nielsen SoundScan figures are not used in RIAA certification; the RIAA system predates Nielsen SoundScan and includes sales outlets Nielsen misses. Prior to Nielsen SoundScan, RIAA certification was the only audited and verifiable system for tracking music sales in the U.S.; it is still the only system capable of tracking 100% of sales (albeit as shipments less potential returns, not actual sales like Nielsen SoundScan).