I just joined a band that is incorporated so to speak--meaning the two main band members tax their income and write off expenses. We also operate two music festivals. I joined in January 2006. I am wondering, can I write off all my 2005 expenses this year considering I use my spare bedroom as a "practice space" and have been practicing regularly to get into a band that gigs regularly. In was in a prior band that I would not consider a business and we made $100 bucks each for a few gigs. I would report it if I do this, but my expenses were $3,000 (new amp, cabs, bass). This is not a hobby anymore as I want to make a strong go at this. I also plan to take pro lessons, etc to boost my knowledge. I should be able to report a profit in 2006, because I don't need to buy anything. Would it be an error to write off this stuff for this year's taxes? Any advice? I don't want to go to a tax professional, because I beleive I can do this pretty easily through a tax computer program online I have used the last three years--TurboTax. But, I don't want to get myself in trouble. Do I just save the receipts and can I write all of this 2005 stuff in 2006? 2. DO I need to bring in a certain amount of money before the IRS calls this a hobby still? Just wondering if I report an income of $1000 for the year, after all deductions, is that not going to fly? It won't be $10000 profit, but it might be $5000. Who knows. We charge about $350 per gig and we have gigs set almost every weekend starting in March, plus more. Some gigs we are getting more. Thanks for any help.