Posted by Pete on September 02, 1999 at 08:46:36:
In Reply to: Re: HOW#%$!(AT)#%$ CAN YOU AFFORD TUBA$$$$$$$$$ posted by Food for thought on August 31, 1999 at 18:25:22:
I'm an accountant who does a lot of tax work for self-employed clients. The idea that you can deduct business losses year after year is misguided. The IRS will start asking very probing questions if you don't show a profit at least one year in three. If you continually lose money as a musician, they will try to classify it as a hobby and disallow the losses. You must be able to establish a profit motive.
"Don't try this at home, boys & girls." Get some professional guidance before assuming you can deduct losses every year, it could save you a lot of grief.