Posted by It's the Tax Code! on April 30, 2002 at 06:45:04:
In Reply to: Re: Re: Tubas- Are they Tax Deductible? posted by mg on April 29, 2002 at 21:01:39:
The reason it has to be the yeaar you became a professional is that under the Internal Revenue Code you can only depreciate assets used in a trade or business. Until you are a professional, i.e. being paid, you are not engaged in a trade or business. It is unusual for players to purchase their own first instrument, perhaps their parents have. Also, expenses preparing to enter a trade or business, such as college costs and the costs of equipment needed for college, i.e. that first CC, are not deductable. After you are a professional, continuing education to maintain and improve your skills, i.e. master classes, instruction, may well be deductable. Remember you have to make a profit at least 2 years out of 5 to avoid 'hobby' issues.