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hobby income schedule

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hobby income schedule
Can an actor/model who receives W-2′s/1099s respetively, submit schedule c deductions for both?

I knowthat in order for you to be considered a business rather than a hobbies, three of the last 5 years need to be profitable. I have always claimed a business loss based on my 1099 income but make deductions as a “performing artist” which covers both roles. I only have a small percentage of my income from 1099-misc this year, but have the same expenses as last year (less actually). Almost all of my income is W2. My two-fold question is: 1. Can I, the “W-2 receiving ACTOR” file Schedule C, as self-employed since the W-2′s come from payroll services for the various commercials I do. 2. In determining eligibility as a business: If I include the “W2 receiving Actor in the equation, then I am profitable ” If I only count my 1099 income, then the years of loss don’t qualify for schedule C. And yet the combined expenses for being a performing artist always bring my 1099-misc income as a model to a loss. It costs me more to

You have to show that you are TRYING to make a profit, not necessarily make one. Some businesses take longer than 5 years to make a profit.

You can only deduct the expenses incurred for the income received on the 1099 on Sch C. The other expenses would be reported on a from 2106 Employee Business Expenses. This would carry to Sch A Miscellaneous Deductions Subject to 2% of adjusted gross income and your total itemized deductions need to be higher than your standard deduction.

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October 11th, 2009 at 4:17 am