This year I plan to turn my volunteer-only piano playing into a part-time hobby business, hopefully to include playing at weddings, private parties, p...
This year I plan to turn my volunteer-only piano playing into a part-time hobby business, hopefully to include playing at weddings, private parties, perhaps at a restaurant and/or teaching a little.
Are all the following expenses able to be deducted from gross revenues for calculating my taxable net revenue?
1. New equipment (will probably need to upgrade my electronic keyboard).
2. Existing musical equipment (such as grand piano) that I previously used for hobby-only, but now would use as part of business — for teaching, practicing for gigs, etc.
3. Continuing education to increase my skill, my ability to get more business and charge more. For example, courses leading to a masters degree?
Finally, how long does the IRS allow this type of hobby business to continue to operate at a loss before they consider it really not a business but just a hobby? For example, I can imagine that start up expenses would easily be more than a first year of revenue, and possibly could eat up pretty much all of the second year’s revenue also.
Tags: continuing education, electronic keyboard, example courses, gigs, grand piano, gross revenues, hobby business, irs, masters degree, part time, private parties, time hobby, volunteer, weddings
Posted in Tax Deductions Q & A | 5 Comments »
I have a small part time photography business. Last year I had ,000 deposited into a business account to start my own business. I purchased some very expensive equipment. during 2006. However I did no paid work. On last years return I stated no income and no deductions for my sole proprietor portion of the return. This year things seem a little more favorable. I actually have a booking for a job and my business is now fully liscensed. How do i factor in my expensive purchases from a prior year? Any advice will be appreciated. Thank you
Sorry i meant i filed no deductions/income for the year 2005
Tags: business account, job, own business, part time, photography business, sole proprietor, time photography
Posted in Tax Deductions Q & A | 2 Comments »
I am currently a contractor and will file a schedule c with my taxes. Next summer I am going to quit my day job in order to home school my daughter. I will only be working part time but would like to purchase medical insurance and look into tax deductable options for medical expenses, something similar to a section 125 that employers offer. What do I need to do to get these kinds of deductions/options
Tags: day job, insurance, medical expenses, medical insurance, part time, schedule c, section 125
Posted in Tax Deductions Q & A | 1 Comment »