Gary is a successful architect who also sings at weddings. This year, he received $5,400 of fees for his singing and spent $6,250 on voice lessons, sheet music, and travel to the weddings. Which of the following statements is true?

Question

Quizplus · Accepted Answer

If Gary can demonstrate that his singing activity was entered into with a profit motive, he may be able to deduct the $850 loss as an above-the-line deduction on his tax return. However, he must be able to provide evidence to support his claim that the singing activity is a business and not just a hobby.

Gary Is a Successful Architect Who Also Sings at Weddings