Who Claims SL fees as a Deduction/Work Expense on their Taxes?

No, I'm not the IRS... hahahaha faaaar from it.

I know I will claim all of my LL fees on my taxes, and was curious to know who else will.

I will if I ever make anything. =) I'm self-employed and host websites for a living so it's just another business expense as far as I'm concerned. The time I put into SL would justify it as a business, I will pay taxes on any income I pull out of SL, so naturally any $ I put into it is a business expense.

Anything done with the purpose of making a profit is a business and any expenses incured are deductable expenses for tax purposes as I see it.

For the USA only, any expenses are permitted to the extent they offset SL income. Any profit must be reported and taxed, either as self employment or hobby income.

The real question is if any loss in SL can offset income earned from other sources. For most of us here odds are the answer is no. But for those who treat SL as a business and meet the standards set by the IRS, then you might be able to get the deduction.

If you're interested, I'll look up the IRS publication that explains this in greater detail.

If you have a net loss position for the year, the IRS will allow you to write-off a loss of up to $3,000 against your income. All other losses must be carried-forward to future years.