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Subject:  Re: Deductions for a second job Date:  8/14/2001  12:43 AM
Author:  tkmbt82 Number:  53317 of 127534

The sections 179 deduction is limited to taxable income, not just income from your business as a musician. If you have another job and are paying income taxes, you will probably be able to deduct the full $5,000.

Also, profits 2 years out of 5 years is just a rule of thumb. You can have losses for any number of years, just so long as you can show you have a profit motive. Having a profit motive, and handling your musician affairs like a business are the most important aspects for deducting losses. Obviously, if you have a profit motive, you will probably go out of business, if you continue to suffer losses for several years and have no prospects for profit.

See an accountant or buy some tax software, such as TurboTax.
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