Thank you. I did not set up a separate electric meter and because the computers are located in a couple different areas of the house, there isn't a practical way for me to ascertain the exact electricity cost (the IRS doesn't like guesstimates) and the home office deduction wouldn't be appropriate either. So it's really just the cost of the original acquisition of the hardware, and then ongoing maintenance -- repairs and upgrades. The first year obviously bore the largest expense but was still profitable. Subsequent years will be much more profitable.
So just so I'm clear, a "hobby" is activity done for fun, that just happens to bring in income.
Matt
