Kalman Rubinson wrote in message
. ..
On 29 Dec 2003 16:46:59 -0800, (John
Atkinson) wrote:
Kalman Rubinson wrote in message
...
I wish you were correct. One can deduct purchased equipment as a
business expense against the income from that business, not from all
income. Thus, if your only audio-related income is $1000, you can
deduct no more than that, regardless of your expenditures.
It's actually worse than that Kal, as according to the accountant who
does my taxes, your income from the business has to be sufficiently high
that the IRS is convinced it _is_ a business, not a hobby. If the latter,
you can't deduct _any_ purchases related to the venture. :-(
I know but I was simplifying. Of course, you know how to help me
convince the IRS. ;-)
Its' a subjective judgment on the part of the IRS. Earn $1000 and deduct
$1000 and the IRS will judge it a hobby. Earn $100k and deduct the same
$1k and the IRS will have no problem with it being a business. THe
dividing line lies somewhere in the middle. :-)
John Atkinson
Editor, Stereophile