Beernik
Well-Known Member
I do not suggest that people create sham businesses in order to write off their homebrew hobby. That isn't smart for obvious reasons.
The question I was posing is whether someone who is engaged in a legitimate (i.e. legal) consulting activity can deduct the related expenses. It seems to me that they would, but that they would have to keep adequate records to support that deduction.
I would say "Yes... But".
Yes you can deduct the consulting activities. But the business is the "consulting services" not the "brewing." Such as renting a space to teach a class or buying parts to teach someone how to build a controller.
Anything that is specifically purchased and used to make a beer is not deductible at all if it goes into the making of a beer. Homebrewing is by definition not a legal business. And while it is required to report income generated from any illegal business (Al Capone) you cannot deduct Federally illegal business expenses (medical marijuana).
Where is becomes questionable is things that are both homebrewing related and consulting related. If you keep jars of malted grain for demonstration & consulting educational purposes it might be deductible. Equipment you have that you use for consulting and for personal use may be partially deductible but you are pushing the bounds of grey areas.