I play in a few bands as a hobby, and historically I have not really ever made any money doing it, but in the last year or so things have picked up and it brings in a little money on the side, including one 1099-NEC form for some of the income. All combined maybe a few thousand dollars a year, so not much. Add to this the fact that I am always buying and selling musical gear that I use to play in these bands. While this is a hobby to me, the IRS reporting thresholds for money raised selling gear in online marketplaces has been coming down and this year I will probably end up getting a 1099-K for some of the sales of that gear.
So, I plan to report the income from those 1099 sources plus the cash income that I get from playing in bands on my taxes for this year, BUT I want to minimize the tax liability that I have on this income. I spend more in a year on buying gear and other gig-related expenses (money spent on gas and mileage driving to gigs, meals during gigs, etc.) than I bring in. Can I deduct all of those expenses to null out my tax liability on this income? What do I need to know about doing that? Will I need to show a profit every 3rd year or something like that? I want to do things properly, but also I don't want to pay taxes on my hobby.
