Got my accounts sorted for tax collection, I spent over $1300 on lasers in 2010...
On the upside, I sold one, therefore they are a legitimate business and thus a fully deductible hobby.
Between lasers and dune buggies, I shouldn't have to pay tax in 2011
I got nailed really hard on taxes a few years ago and swore it wouldn't happen again, all of my books are on the level but I create a few new "experimental" businesses every year.
A word to the wise, I got a ruling a few years ago and the tax department basically told me that a business has to show potential for a reasonable profit within 2 years. After 2 years it is no longer a legitimate deduction. After that I took a trip up into the Yukon prospecting for gold, took a trip to Australia presumably to find opals (didn't find any), etc. etc. etc.
Never take a vacation again, all of your fuel and possibly even food could be deductible if you do a bit of research on your destination or on a "hobby" if you sell something (even to yourself :shh: ).
Sold a bit of collimated light, didn't have to pay tax on a single electronic component purchase.
Having a clever (yet honest) accountant helps too! :na: