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Hobby or Lifestyle?

This thought reemerged again last night after going to my tax accountant. Upon being told the obscene amount of $ that the govt. is going to releive me of my wife said I should find another hobby which is work related (and thus deductable). This triggered a thought. In the past I've seen many posts about this "hobby" and it has always seemed odd to me to call it a hobby. I've never thought of this as a hobby. I started buying records at about the age of 9-10 (1960-61). I had a cheap "record player" back then and since that time I can never remember a day without a way to play my music or many days that I didn't play some music. My systems got better through the years and I now have the best system that I have ever owned. In my younger nomadic days, I can remember moving with only my clothes, drums and stereo. And if I had to move today and could only take three items, the list would be the same. To me "stereo" is not a luxury item. It is as necessary as any appliance in the house. It's not a hobby but a lifestyle. Anyone else feel this way?
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Showing 2 responses by sugarbrie

sugarbrie
3,854 posts
 
Section 179 is currently $24,000 and is limited to income; it cannot create a loss. You could also have a business that uses the audio equipment, instead of buying and selling. Start a part time business recording local concerts and burn CDs. (Or something similar.) You would probably get to deduct a chunk of your computer related equipment as well. You do have to demonstrate a real profit motive, for it not to be a considered a hobby by IRS. If a "hobby" does create some income, the expenses are limited to income. You cannot deduct any losses.

Good Luck.... Sugarbrie CPA
sugarbrie
3,854 posts
 
Music is a lifestyle. I sing in a professional choir, and attend well over a couple dozen live concerts a year that I am not performing in. Other than the HT system, I have three audio systems: the main one; one in a bedroom that is a home office, and one in my work office. So I am surrounded by music all the time (including the car).
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