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Message:: [QUOTE="JustHad2, post: 2234003, member: 74491"]I am going to state word for word where YOU CAN DEDUCT LOSSES on a hobby straight from the IRS web site. Please quote for me, again directly from the IRS web site, where it specifically says that you CAN NOT deduct losses on a "not for profit activity" such as a hobby or a farm that you engage in for pleasure. Activity not for profit. You must include on your return income from an activity from which you do not expect to make a profit. An example of this type of activity is a hobby or a farm you operate mostly for recreation and pleasure. Enter this income on Form 1040, line 21. Deductions for expenses related to the activity are limited. They cannot total more than the income you report and can be taken only if you itemize deductions on Schedule A (Form 1040). See Not-for-Profit Activities in chapter 1 of Publication 535 for information on whether an activity is considered carried on for a profit. So there it is in black and white - you can deduct but only up to the amount of income and cannot be used to offset other income. Now lets see your quote from the IRS website.[/QUOTE]