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<p>[QUOTE=&quot;JustHad2, post: 2167734, member: 74491&quot;]Partially right (from my experience).</p><p><br /></p><p>A hobby loss for an individual can be deducted but only up to the amount of income.</p><p><br /></p><p><a href="http://www.irs.gov/pub/irs-pdf/p535.pdf" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://www.irs.gov/pub/irs-pdf/p535.pdf" rel="nofollow">IRS Publication 535</a> covers the IRS determination of whether you are &quot;carrying on an activity for profit&quot; and the above is only one of the 9 useable measures and &quot;no one factor alone is decisive.&quot; </p><p><br /></p><p><a href="http://www.irs.gov/pub/irs-pdf/p525.pdf" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://www.irs.gov/pub/irs-pdf/p525.pdf" rel="nofollow">IRS Publication 525</a> covers deductions for Not-For-Profit activities and hobbies. </p><p><br /></p><p>&quot;<b>Other Income</b> </p><p><br /></p><p>The following brief discussions are arranged in alphabetical order. Other income items briefly discussed below are referenced to publications which provide more information. Activity not for profit. You must include on your return income from an activity from which you do not expect to make a profit. <b><i>An example of this type of activity is a hobby or a farm you operate mostly for recreation and pleasure.</i></b> 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). <b><i>See Not-for-Profit Activities in chapter 1 of Publication 535 for information on whether an activity is considered carried on for a profit.</i></b>&quot;</p><p><br /></p><p>Yet there is another area that covers Capital Gains from Coin Collection or Art profit. I don&#039;t recall it right off hand but it is on my computer in a folder labeled &quot;Fight_With_The_IRS&quot; ....&nbsp; I am not in jail --- yet. <img src="styles/default/xenforo/clear.png" class="mceSmilieSprite mceSmilie2" alt=";)" unselectable="on" unselectable="on" />[/QUOTE]</p><p><br /></p>

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