The IRS allows business owners to write off various expenses that are directly related to the company’s operations. For dance studios, these commonly include rental costs, utilities, office supplies, marketing fees, and travel expenditures. However, there are other deductions that have the potential to minimize your tax liability. Here are some lesser-known deductions that may apply to your situation.   

What to Deduct When Filing Taxes for a Dance Studio

1. Technology 

Living in a digital world makes it important to have access to the latest dance studio software. This will help keep your books in order so that you can easily account for all the money that comes in and goes out of your business. Any new equipment you purchase to use in the studio may also be considered a technology expense, such as computers, lighting kits, speakers, and cameras. 

2. Makeup and Costumes 

Most dance studios participate in various recitals and competitions throughout the year to showcase all the hard work students have put into their classes. These performances generally require full makeup and elaborate costumes. If you buy these supplies for your dancers, they’re tax deductible, including any dry cleaning or laundry costs you incur. 

3. Music 

Dance studios use music in many forms to conduct classes. Therefore, sheet music, CDs, DVDs, digital song purchases, and music subscription services can all be tax write-offs. 

However, you can only deduct the expenses that pertain to your business. If you pay for a music streaming service and use it at home, you must figure out what percentage is used just for the studio. 

4. Professional Development

Dance instructors benefit tremendously from continued training, and you can learn a great deal from conferences, workshops, and seminars that provide information your studio needs to grow and succeed in the dance industry. The costs of attending these events and any membership fees you put towards joining a professional organization in your field are often-forgotten deductions you might be able to take advantage of. 

Whether you need help reaching your financial goals or you’re looking to achieve a higher level of business excellence, the professionals at More Than Just Great Dancing will guide you in the right direction. Based in Onalaska, WI, this company has worked with dance studio owners across the nation to set a solid foundation for success. They provide trusted consulting sessions along with many other services to support your endeavors. Call (608) 790-8404 to learn more about becoming a member of this organization, or visit them online for additional information on their offerings.