How much money are you spending on teaching?

[Bob]

How much of your own money are you spending as a teacher?  What would you estimate per year?

And what do you spend that on?  Teacher improvement materials (books on piano teaching)?, buying materials for students that can't afford it?, stickers and candy?, etc., that sort of thing?

I suppose gas and office supplies too, but I wasn't really thinking about this type of teachnig expense.

[pianoannie]

I was just working on my taxes a few days ago, and I don't remember the breakdown of expenses by category, but I remember my total business expenses were about $4500. (I'm guessing that's higher than most teachers, but I'll find out as I follow this thread).  I do a lot of "extras" for my students, and everything costs money.   I do a few parties each year, a teen recital/dinner, a special summer recital (last year it was a carnival in my backyard), and a formal spring recital, so food and paper goods for all these events is a big expense for me.  Of course I have the typical piano tuning fees, professional memberships and magazines, business insurance, inkjet refills, and fun stuff like stickers, contest prizes, and Christmas gifts for students,
Also, that amount includes the students' music books, the cost of which is included in the tuition paid.  And I have been studying with an advanced teacher, so I deduct the cost of my lessons, travel for those lessons, and also vehicle expenses for all the trips I make to the music store, copy store, etc.
BTW, I don't take the home office deduction, although I legally could.  I don't want to bother with that, or to send up that red flag for auditors.

[Bob]

Also, how much do you as a piano teacher spend on professional development?  But not the things that are more on the side of improving you only -- those things that make you a better musician.  I'm thinking of the money you spend for things that directly improve you as a teacher -- teaching books, teaching seminars... that sort of thing.  I think that was the original intent of my first post but it didn't come out that way.

[pianonut]

dea piano annie and bob,

sounds like you have it down to a science, annie.  that is good!  and, bob, the books and seminars sound ok, too.  once you have declared books at a set price, do you then have to figure depreciation?  i don't like paperwork.  how many seminars do professionals usually attend each year.  i went to one in july (way back when) over a weekend (i only stayed one day). it happened to be when there was an earthquake in la and when the chandalier started shaking and rattling above me, i moved over - then quietly went down the stairs to the concrete basement (crushing zone) to drive out with my car.  everyone else stayed.  that is dedication! i think it was an mtna seminar.

[Torp]

once you have declared books at a set price, do you then have to figure depreciation?

Pianonut,

Generally, books would not be considered a depreciable asset.  They would simply be expensed as an operating expense.  Things like a piano, on the other hand, would be considered depreciable.  If you're using your personal residence as a place of business then the square footage associated with that business would be depreciable as well.

There are many rules and regulations about what can and can't be expensed and/or depreciated for any business.  Generally speaking though, they must fall into the category of normal and customary for that type of business.

Having spent several years preparing taxes (thank God I don't do that anymore) my best advice would be to find a tax professional to help with the tax accounting.

Probably more info than you were wanting with your question, but hope it helps.

Sorry if I hijacked the thread a little.

Jef

[Bob]

I'm just wondering how much money I should be spending on my teaching.  Sometimes I see a book and think it might be useful for a student, but the only way I could really tell is to buy it and find out.  If it turns out useful, great.  If it's a dud, then I've wasted that money.  I don't like wasting money, or maybe I'm just stingy, but considering teaching is not monetarily worthwhile I don't like the idea of making it less so by spending more money (or by spending more money than I'm taking in.  Oops! "It's good that you're paying me for this lesson because I've already spent that money on materials to give you a better lesson next time.")

[pianonut]

Bob,

it sounds like you are in the same position i have been in (teaching younger students).  they need more attention (books, stickers, prizes, etc) and you are right!! it adds up.  maybe, you , like i, want to start aiming at older students.  they need less hand holding (and monetary rewards - prizes, candy), and usually buy their own books (can get around) and music.  just start telling people you are not taking any more students under 12.  the older ones just practice because they want to.