Above is all accurate. I do take deduction. As Understudy says, I will lose money for 3 yrs and then get a small profit or IRS gets testy. But if you get a W-2 on your mortgage paying job, and your losses dont exceed 10% of your total gross income, you are not likely to draw attention of IRS. I used $1400 of deductions from beekeeping. I kepp all my receipts, I keep a log in car for wjen I am doing bee business, including club stuff(education! and training!), deeucted my website costs, business cards. So it will reduce your tax bill. I pay a lot in taxes and I find great joy in using the rules to help me when I can. And I havenmt ven bough a pick-up yet. That will probably be a year three purchase!