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 1 response by kthomas

If you're looking for a tax writeoff, it doesn't matter if it's a hobby or a lifestyle, neither is deductible. You could start a business of equipment "reselling" and, as long as you showed a profit some % of years, could keep a lot of gear going through the system. Or, you could start a business that, through some convuluted logic, "required" you to have an audio system. I can't think of what that might be, but a small company can writeoff a modest amount of depreciated expense in a single year (Section 179) for justified expenses. -Kirk