You are correct. You cannot claim Section 179 deduction if you have a loss. The unclaimed portion of section 179 deduction will be carried over to future years. TurboTax will recognize this situation and carry over the surplus.
There is an alternative for you. If your musical instruments cost $2,500 or less each, you can deduct them entirely as expenses under the de minimis safe harbor election. This will allow to recognize a net operating loss (NOL) which can be used to offset your other income if any, or be carried over to future tears.
Please read this IRS document for more information.
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