Deduction of Home Theater as a hobby? (1 Viewer)

[Ryan Wright]

So, I'm going through TurboTax, and it says you can deduct "Hobby income." I spent at least $8000 last year on my Home Theater. Can I deduct this as a hobby?

 

[Michael*K]

I think this questions comes up every year. If I recall from last year's discussion, the short answer was "No." :frowning:

 

[RicP]

No. It means a hobby that generates income i.e. making dolls and selling them at a flea market or something similar. The hobby has to be shown to be a somewhat viable one in terms of generating income over and above your primary income.

 

[Ryan Wright]

Damn! Thanks for the responses.
What if I charged my friends $1 admission to every movie next year?? only kidding...

 

[Dan Hine]

What if your hobby is something that helps to further your knowledge and understanding of your field of work, therefore making you more valuable and proficient at your job? Anyone with tax-smarts have an answer?

Dan Hine

 

[Alex Spindler]

I'm thinking this is Scott Weinberg's year.

 

[Todd Hochard]

You can only deduct hobby expenses that can be offset by hobby income. So, if HT actually makes you money, then you can deduct the costs to get back to $0.

Todd

 

[Dave Poehlman]

You can deduct certain remodelling expenses.

 

[CapnSharpe]

What kind of remodeling expenses? Is it only in case of disaster or can a leaky pipe provide a tax deductible remodeling project?

 

[Jeff Kleist]

My friend who works at a nameless studio deducts virtually everything and I HATE him. Goes out to lunch, usually at work, buisness meeting DVDs? Research material New computer? You know it

 

[Dave Poehlman]

What kind of remodeling expenses?

I think you can claim "permanent improvements" on your home. So, if you get new carpeting or put up some drywall.

As far as the leaky pipe, I'm not sure...

Of course, I am not a tax attorney.. and therefore I am not responsible for anyone that gets reamed by the IRS for claiming drywall, carpeting, or other such nonsense.

Check with a tax-knowlegeble person. I think some outfits have a hotline you can call for questions like that.

 

[PhilipW]

This is kinda like claiming gambling loses. You can only claim losses as a deduction if you claim your winnings for income, but not more losses than winnings. Kinda stupid.

 

[ikiru]

You could charge people to watch your home theater...but that would lead to other problems...better just take the hit.
-ikiru

 

[CapnSharpe]

I was asking because the bath tub spout "separated" from the pipe and caused an estimated $2500 in damage to the drywall, flooring, and carpet padding. I wasn't sure if that would count compared to my boss who had an inch of water during Allison and a perfectly obscene repair bill as a result. :frowning:

 

[Denward]

Theft and casualty losses are deductible to the extent they exceed 10% of your Adjusted Gross Income. Here's the full poop straight from the horse's mouth:
http://www.irs.gov/efile/display/0,,...D16235,00.html

 

[Paul Richardson]

Keep in mind that it's illegal to charge people to watch your DVDs (I know nobody's being serious about that, but still.) You know those FBI warnings that nobody reads? That's what they say.

 

[Dan Hine]

You're not charging them to watch the dvd, you are charging them for the use of your facilities.
Dan Hine

 

[Bill Catherall]

So now you got me wondering...

Since I just started up a part time home theater design and installation business, can I deduct what I spend on my own home theater as a business expense or hobby expense? I know I can deduct what I actually spend on my business to offset my income (duh...income-expenses=profit which is what gets taxed) but can I actually deduct what I spend on myself since it's a hobby related business?

 

[Anthony Hom]

You need to read the details in turbo tax to find out what hobbies you can deduct from.

The short story is, the hobbies you can deduct are ones that you can sell products.

This can include knitting or sewing (where you sell the items you make), collecting (like antiques or collectibles, provided you sell them, too)

The problem, is, home theatering is like a big minus sink hole. It's a total loss. The only way home theater might be a deductible is you make a minor business of having people pay you to setup their systems. If you show some expertise in how to set them up, knowledge of what equipment to recommend and actually advise people, thus taking up your time even if you make the service free, then there is a possible long shot of deducting. This would only work if you bought items beyond your normal home theater, like sound acoustic test equipment, and any other tools needed. Now it sounds like a real job and not just a hobby.

 

[Dennis Nicholls]

Bill,
Give this a shot. Have fun. :p)
www.irs.gov/pub/irs-pdf/f1040sc.pdf
This is what sole-proprietors fill out. Be advised that if you don't ever start to show a profit you are "in deep doo-doo" as they say....