Jeff_in_KC
somebody shut me the fark up.
- Joined
- Jan 4, 2005
- Location
- Pleasant...
Question... been working on my taxes finally using "TaxCut". Got to the part about deductions and came across hobby expenses. Here's what it said about hobby expenses:
Enter the amount of any expenses you incurred in 2005 in the course of your not-for-profit activities, but only to the extent you reported income from those activities.
In counting "total expenses" for this purpose, you must include items such as interest that would be deductible in any event.
If you have expenses in excess of income from an activity, your tax benefit would be greater if you could deduct them. To deduct expenses in excess of income, you must prove that you had a profit motive in engaging in the activity.
You will be presumed to have the needed profit motive if the activity actually showed a profit in 3 of the past 5 years (including 2005). (If the activity consists of breeding, training, showing or racing of horses, the reference is 2 of the last 7 years.)
If you can show the needed profit motive, either using this presumption or otherwise, you should report all of your income and expenses for that activity on Schedule C, not here.
Given the fact I don't know squat about this area of taxes, can anyone help me with this? Can I deduct my expenses in buying all my start up equipment for BBQ contest last year, including entry fees and meats?
Enter the amount of any expenses you incurred in 2005 in the course of your not-for-profit activities, but only to the extent you reported income from those activities.
In counting "total expenses" for this purpose, you must include items such as interest that would be deductible in any event.
If you have expenses in excess of income from an activity, your tax benefit would be greater if you could deduct them. To deduct expenses in excess of income, you must prove that you had a profit motive in engaging in the activity.
You will be presumed to have the needed profit motive if the activity actually showed a profit in 3 of the past 5 years (including 2005). (If the activity consists of breeding, training, showing or racing of horses, the reference is 2 of the last 7 years.)
If you can show the needed profit motive, either using this presumption or otherwise, you should report all of your income and expenses for that activity on Schedule C, not here.
Given the fact I don't know squat about this area of taxes, can anyone help me with this? Can I deduct my expenses in buying all my start up equipment for BBQ contest last year, including entry fees and meats?