Technically, a band is its own business. When a band plays a club it is entering in a contract with the club owner. Most times it is a deffered payment contract based on the amount of people that came to see that band.
Contractors get paid whatever they agree to get paid, minimum wage or less. The reason so many bands play for little or nothing is because not only do we get to play, which is fun, but we also can get buzz. Unfortunately, for many talented and dedicated people, this still never pans out to even the minimum wage.
The way we can work this in our favor is when we start to really think of our band as an actual business. Let's say that you play once a month (or even once a year) at the same bar and everytime you personally get anywhere from 10-100 dollars a night. Make sure you get a reciept of payment from the club ownership. Now, your business has income.
In effect, now everything you spend money on for this business is an investment. Gas to get to the club, the strings on your guitar, heads on drums, cables, tubes, the instruments and amp themselves, any work you had done on your guitar, the burrito you bought across the street, the clothes you bought for onstage, all of your studio equipment, the plane tickets to Heathrow where you played at a pub (promotional tour), etc. All of those things are investments. Subtract all of that from the money you made and you will probably find a significant loss. As long as you keep track of these things you can file them as a loss on your taxes. This can mean a significant tax refund.
Now I am no accountant. I do recommend consulting one so you know how to stay on the up and up with your deductions. I assume that the consultation would also be a write off though.
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