I request a part of Liability Salvage special compensation be paid me today

There are four elements must exist in order to get the salvage award:
(i) there should be recognized subject matter;

Duh, Oil Spill in the Gulf

(ii) the subject of the salvage must be in danger at sea;
Duh

(iii) the salvor must be volunteers; and
Having spent over 100 hours of my time and out of pocket expenses to do this on my own initiative I that that qualitifies.
Yes, I even have witnesses and documentation to back that up.

(iv) the service must be successful.
Element (i) recognized subject matter
Traditionally, salvage only recognizes as a ship or craft, cargo on board, freight payable and bunkers carried on board as the subject of property in danger. The concept of property has been expanded by the 1989 Salvage Convention.
The Convention recognizes saving life as an independent subject of salvage but the protection of the environment is the subject of salvage. Oil pollution can cause damage to the environment. If the salvor had prevented oil pollution from happening, he indeed performed a valuable service to the community as mentioned by (1997) 1 Lloyd’s Rep 323 (HL), pp 326–28. Therefore, the salvor will be rewarded with special compensation, i.e. ‘liability salvage’ instead of ‘property salvage’.
Element (ii) real danger

Well, iv is not proven yet, but a solid argument on the research data I have make a good case for success along with the people I spoke with. I think that a portion of the special liability salvage compensation is due now so that this can be shown to be the case with prototype simulations and real-physics modelling.

which costs money, so that should get paid for. What’s fair? I dunno.
Let’s just talk about today August 2nd, 2010. I would like $50,000 for work to date done at my time and out of pocket expense.

http://www.cawidgetwerx.com/~info

is proof.

Payable today please.
$20K goes to hire some employees and pay their benefits.
$30K is split equally among my partners by written agreement and so $10K goes to each partner.

Of my $10k, I choose to buy $5000 in stock in one corporation and spend the remaining $5,000 on capital equipment to take this to the next step.

The Rock Band as Tax Shelter Service Provider

One of the Best Tax Shelters in America is a sideline business you actively manage, which gets around the tax reform prohibiting taxpayers from offsetting their salary and investment income with losses from passive investments.

Active management (i.e., participatory) of sideline business lets you claim tax losses for

depreciation on cars
equipment
real estate

even while the business is earning a cash-flow profit.

Precedent:

Bernard Wagner, an accountant, fancied himself a songwriter and music promoter. He hired a band, rehearsed it, booked it, and copyrighted the songs he wrote. Although his chances of success were slight, he intended to succeed, so the Tax Court let him deduct his costs and losses.”
Source: Bernard Wagner, TC Memo 1983-606

The requirement for qualification as a business is operation with objective of making a profit, you don’t have to make nor expect to make any in the near future. (And it may be a good idea to file IRS Form 5213, Election to Postpone Determination that Activity is for Profit, merely to prove you are serious).

As far as a rock band goes, it almost goes without saying such is the case – think of the lyrics to “Rock and Roll Lifestyle” by Cake
Everyone wants to be a Rock Star (Nickelback).

The key here is to keep accurate documentation.

So, let’s see what we can get away with legally (where we can go with it.)
The assumption is you have a regular job and are not a band musician.

1. BOOZE (bar tab)
Bands play in bars, for money. If you go to the bar and bring your friends, pay for dinner and rounds of drinks – 80% of that cost is deductible as a business and entertainment expense. By bringing your friends you are promoting the band, with the intent that if they like the music they will tell their friends and have a positive impact on revenue.

The bigger crowd a band draws, the more money it gets and greater likelihood of future shows. This actually might work. There tends to be a 2 drink minimum policy by default.

So, the important thing is the documentation and making it idiot proof. You know those prepaid gift cards? Some you can put your own image or logo on? And they keep transaction records. Match the with gig dates and location with transactions and that should be adequate. I should imagine you can deduct the Taxi ride home because you are too intoxicated to drive safely. Meaning you take a taxi there in the first place and deduct the round trip.

Remember 80% limit on these deductions. Still, we are talking money you earn from your job, you go out to the bar to see the band, blow a wad on liquor, and deduct 80% as a sideline business expense. And the taxi, don’t forget – no drunk driving.

I guess I will define the Service offered by the band. Let’s use the above example.

You purchase the gift cards, that transaction is recorded as an investment (they will have the band logo on them).
All transaction records are kept by 3rd party.
Band gigs and other activity records are kept.
There is a small service fee involved that helps pay band expenses (Come on you are receive a tax deduction for bar tabs in return…)
At the right time or on request you get a fully itemized and documented receipt correlating your purchases with band activity.

And the Value Add (for additional service fee)
The itemized receipt is run past an accountant and comes to you with full instructions on how to deduct and how much.

The BIG Value Add – personal consulting
The Band will work with you to deduct vacations, entertainment, cars, real-estate, etc.
Things you normally would take a loss on because there is no provision to deduct it. Creativity and imagination to the rescue. We shall find a way to make it deductible.