I made $2,100 doing work for my neighbors, but I broke my machine and it cost me most of what I made. Can I deduct repairs without being a business or self employed?

[metsopulosj]

If you aren't an LLC and don't have a separate company created for your business, then you would attach a Schedule C to your tax return to declare the profit/loss of a business. I apologize for the error in my previous post.

[Opus 17]

No, this is wrong in almost every respect.

[VolvoGirl]

@metsopulosj  your post is totally wrong!

[Opus 17]

You ARE self-employed.  You "made $2100" doing work for your neighbors.  You need to report the income on a schedule C and pay income tax plus self-employment tax on the net income (after expenses).  Repairs to equipment used are a deductible expense.  Purchase of a new piece of equipment is deductible or depreciable over time, depending on the circumstances.

If you don't report the income (keep it under the table) then of course you can't deduct expenses either.  It's just something you owned that broke, that's life.  Except for certain lifestyle deductions created by Congress (child care, mortgage, etc.) you can only deduct expenses against the taxable income that those expenses are related to.

[dwilson]

Thank you. I planned on reporting it but wasn't sure which route to take.