I teach a group music lesson at a school for an hour a week. I act as a sole trader and only earn $1k a year from this. My main job pays about $80k and is completely unrelated to music. When I do my tax I only have to do an individual tax return for both incomes combined.
I don't teach to earn money, but because I want to share my knowledge.
I buy instruments and recording equipment with the money I earn and use it to teach the kids.
If I spend more than $1k on the music equipment can I only deduct up to $1k from my taxable income? Or can I deduct more, theoretically up to $81k.