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Tax time - can I deduct my hobby expenses?

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Old 03-27-2003, 11:39 PM
  #1  
BocaBen
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Default Tax time - can I deduct my hobby expenses?

On my Turbo tax program, there is a place where I can enter my deduction for hobby related expenses. Can I enter what I spent for R/C hobby last year in there (and hope that my wife doesn't see it!)???

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Old 03-27-2003, 11:43 PM
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Default Tax time - can I deduct my hobby expenses?

You can, but you will probably loose when you get audited.
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Old 03-27-2003, 11:58 PM
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Default Re: Tax time - can I deduct my hobby expenses?

Originally posted by BocaBen
On my Turbo tax program, there is a place where I can enter my deduction for hobby related expenses. Can I enter what I spent for R/C hobby last year in there (and hope that my wife doesn't see it!)???

BocaBen
Like FlyBoy said you can but you will lose. You can only claim hobby expenses providing you have made income off of it, per the IRS. Which total stinks I think.

Just my .02 worth.
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Old 03-28-2003, 12:26 AM
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Default Tax time - can I deduct my hobby expenses?

You can do it to offset your winnings but you cannot claim a loss for your hobby.
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Old 03-28-2003, 01:25 AM
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Default Tax time - can I deduct my hobby expenses?

Ok...you guys found out the REAL reason I started RC Universe
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Old 03-28-2003, 07:34 AM
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wau-dweeb
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Default Tax time - can I deduct my hobby expenses?

>On my Turbo tax program, there is a place where I can enter my deduction for hobby related expenses.

Scandinavian Machiavelli-attack...

Stop calling rc-modeling hobby, sign in to some university as a student of aerodynamics and claim all planes as studying material
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Old 03-28-2003, 02:41 PM
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Default Tax time - can I deduct my hobby expenses?

Originally posted by RCadmin
Ok...you guys found out the REAL reason I started RC Universe
sneaky!
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Old 03-28-2003, 02:44 PM
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Default Marc....

LOL

I'm not convinced, but I'll keep the party line...
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Old 03-28-2003, 03:06 PM
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Default Tax time - can I deduct my hobby expenses?

Originally posted by RCadmin
Ok...you guys found out the REAL reason I started RC Universe
Wish I would have thought of that. hehe
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Old 03-28-2003, 04:00 PM
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Default Tax time - can I deduct my hobby expenses?

If RC flying keeps you from going nuts it can be considered a form of medical treatment and thus- tax deductible.
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Old 03-28-2003, 05:03 PM
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Default Tax time - can I deduct my hobby expenses?

JDHammer might be onto something.....

If it's considered a "hobby", you could only take expenses in the amount of earnings that you made.....which nets you at zero.
What you could do, is somehow make it into a business, not a hobby (i.e., building planes for people), and then you would be able to claim more expenses than income.....but......you couldn't get away with this forever....


Mike
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Old 03-29-2003, 01:32 AM
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Default Tax time - can I deduct my hobby expenses?

Have a Doctor flying buddy who says building & flying models is "Therapy", suppose it would work if he put it in writing & I could then deduct as a "Medical" expense!
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Old 03-29-2003, 04:18 AM
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Default Tax time - can I deduct my hobby expenses?

Depends on if you consider it physical therapy, or in your case, Max, it would be mental therapy!!! HA!! Are you still in snow?
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Old 03-29-2003, 01:53 PM
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big max 1935
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Default Tax time - can I deduct my hobby expenses?

How did you know I had a MRI on my head the other day looking for a tumor & all they found was a "VACANCY" sign!! The big snow is gone but it did try a little yesterday. Tippie ,I was thinking you & I were the only strange ones on here , but there is a WHOLE bunch of them. 19 degrees this morning.
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Old 03-29-2003, 02:00 PM
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Default Tax time - can I deduct my hobby expenses?

Max:

Remember that Gracie Allen told George Burns that she had her head examined, and the doctor found nothing.

She also never understood why the bank wouldn't take a check to cover her overdraft.

And yes to all, the IRS has never disallowed my deduction for r/c as a medical expense.

This is not to say I have claimed it, just that they've never disallowed it.

Haw.

Bill.
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Old 03-29-2003, 06:07 PM
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Default Tax time - can I deduct my hobby expenses?

Max, I think you CAN deduct the cost of crayons that you get there at "the home." I know they won't allow you to have anything sharp. And you're right, you DO have to be a little demented to enjoy this hobby, or is that dementia? I don't know, I don't remember.
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Old 03-29-2003, 06:48 PM
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Mike Bell
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Default Tax time - can I deduct my hobby expenses?

Deduct my planes and other expenses I would never be able to get a loan again.
Debt to income ratio would look REAL bad

Mike
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Old 03-29-2003, 07:01 PM
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William Robison
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Default Tax time - can I deduct my hobby expenses?

Well said, Mike Bell.

Bill.
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Old 03-30-2003, 01:17 AM
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I wish....I'm getting bent over big time!
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Old 04-02-2003, 02:50 AM
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Default Tax time - can I deduct my hobby expenses?

What about claiming it as "research and development" if your intention is to design, build and sell and airplane or two. The IRS allows five years before making a profit. It doesn't cost anything to get a tax ID number for a company. Every five years start a new company. Who knows, you might even make a profit.

Only my two cents. I'm not a CPA, only a bad pilot.
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Old 04-02-2003, 03:33 PM
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Default Tax time - can I deduct my hobby expenses?

Dr. Wine,
I think you could definitely pull that off, but be prepared to show the auditors an "orginal design"......but I like that suggesstion and I think it would work....expense other planes as part of your research in design/aerodynamics....but I don't think you could get away with getting another tax ID number after 5 years....they have a way of finding that stuff out!!

Mike
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Old 04-02-2003, 03:43 PM
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Dr. Wine
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Default Tax time - can I deduct my hobby expenses?

I guess I'll have to really try and make a profit. It will be hard considering all the money spent in the past year. I am working on a design now. Trying to design a plane specifically for the O.S. Wankel .30.
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