IRS Audit — Business Use of A/V Equipment

This document is evidence that the professional A/V equipment on the taxpayer's depreciation schedule was used solely for real professional work — not personal activities. It corresponds to the matters set out in the accompanying Declaration Under Penalty of Perjury signed by the taxpayer.

TaxpayerGiacomo La Vita — Schedule C sole proprietor, professional performer (NAICS 711510). Bachelor of Music and Master of Music in classical guitar performance. Audit years: 2019 and 2020.

EquipmentAll A/V equipment on the depreciation schedule — instruments, recording equipment, cameras, microphones, lighting, and related accessories — was purchased by Giacomo with his own personal funds (sole proprietor, no reimbursement from any third party), is used solely by him, and remains in his possession and active professional use to this day.

Use of equipmentGiacomo uses the equipment across every musical activity he performs in: his solo classical guitar recordings, the La Vita Duo (with his spouse Jeanai La Vita, soprano), and the DanzaNova quintet. Items below include concerts, recordings, music videos, photo shoots, auditions, album releases, and promotional materials — all produced on the depreciated equipment.

TimelineMost of the equipment was purchased between 2012 and 2016, and the heaviest period of use was 2013–2016 — see the cluster of guitar recordings and the Nightfall album at the top of the timeline. Use continued steadily from time of purchase to the present day.

2019–2020 (audit window)The audit years coincided exactly with the COVID-19 pandemic shutdown, when essentially all live-performance work for classical musicians was cancelled. This explains the gap in concert evidence during 2019 and 2020 — not a change in professional activity, but an industry-wide shutdown.

First post-shutdown workThe first post-shutdown performance opportunity was the October 28, 2021 DanzaNova concert at The Clemente Soto Vélez Cultural Center in NYC — funded by the NYC City Artist Corps Grant, a program created specifically to bring professional performing artists back to live work after the pandemic. Being awarded that grant as professional performers is itself direct independent evidence of professional status.

Profit motiveGross receipts have grown substantially over time — from $600 in 2019 to $18,005 in 2024 — and the activity reached net profitability in 2024. The equipment purchases were made to build the recording and production capability necessary to compete and earn income as a professional performer.