Gaming Books as a Business Expense?

[Varianor Abroad]

Although the IRS site text implies that you can offset purchases for the hobby with hobby-related losses. You just can't offset non-hobby income with a hobby income loss. Any tax experts or lawyers out there who can explain the how-tos?

 

[Kormydigar]

Although the IRS site text implies that you can offset purchases for the hobby with hobby-related losses. You just can't offset non-hobby income with a hobby income loss. Any tax experts or lawyers out there who can explain the how-tos?

As far as the hobby distinction goes, your business must make a profit 3 out of 5 years to qualify as a business. Tax treatment will differ depending on whether you are running as a schedule C sole proprietorship or filing an 1120 as a C corporation. The hobby thing will not be as big of an issue if you are incorporating. If you don't have much in the way of start-up cash you may want to start as a schedule C business just to test the waters. Incorporating has advantages but it costs money.

 

[cignus_pfaccari]

Maybe, but I've also seen the terms "gaming" and "gamer" used by the casino industry and professional gamblers!

zog

Ah, yes, that is MUCH more likely.

Brad