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[Michael Czeiszperger <michael AT czeiszperger.org>]

On Mar 1, 2005, at 5:26 PM, Jason Laughlin wrote:

> You don't have to be an LLC or S corp to deduct business expenses.  
> Simply file Schedule C with your 1040.  Works fine for sole 
> proprietorships.
> So long as you can demonstrate that your expenses are related to a 
> business and you have an intent to earn profit from those activities, 
> you can write off related business expenses even if they result in a 
> net loss.  If it's a "hobby activity" then you can only write off 
> expenses against any income earned (to come to zero).
> I've been doing it this way for 5 years with no problems.

I'll second that.  I kept track of money made from music over the years 
and was then able to write off most of the guitars and amps I bought.

___________________________________________________________________
michael at czeiszperger dot org
Chapel Hill, NC USA