DEDUCT YOUR HOBBY (IF IT'S A PART-TIME BUSINESS)
          
               As we mentioned in our discussion of owning your
          own business, the IRS may argue that you are not trying
          to make a profit, so the activity really is a hobby. 
          Then your deductions will be limited to your income
          from the activity. 
               But you can take all the deductions by qualifying
          for the "safe harbor" provision.  Tax reform made the
          safe harbor more difficult to reach.  You now have to
          make a profit in three out of any five consecutive
          years.  If you don't meet the standard, you still can
          take the deductions by showing that you really tried to
          make a profit. 
               You do this by conducting the business in a
          professional manner.  Keep good books and records. 
          Hire experts and advisors when necessary.  Be sure all
          your practices conform to generally accepted industry
          standards.  Take courses or some other form of
          instruction to improve your skills in the field.  You
          also must devote enough time and skill to the activity
          on a regular basis to indicate that you are serious
          about it. 
               An activity can be considered for profit if you
          don't expect to generate much current income but
          believe that assets used in the activity will
          appreciate and produce significant capital gains in the
          long term.  By following these guidelines you can
          deduct the costs as business expenses even if the
          activity never turns a profit.