Maximum deductions if you have two jobs?

[#1]

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.

[#2 · Accepted solution]

You can deduct as much money as you have spent on work-related expenses that you haven't been reimbursed for.

However, any sole trader income will only be reduced to $0.

Any excess will be carried forward as a business loss and used to offset future sole trader earnings.