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Writing off gear?



 
 
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  #1  
Old May 23rd 06, 12:11 AM posted to rec.photo.misc,rec.photo.digital,rec.photo.equipment.35mm,rec.photo.technique.art
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Default Writing off gear?

Income tax write-offs: generally, if you have income to buy equipment,
you must also put the income into your income taxes. That includes a
sum of $$$s for self-employment taxes and social security taxes. If,
after gifting the I.R.S. some of your money, the I.R.S. is kind, you
may be able to 'write-off' a portion of your equipment. The travel
part of your trip is a different story __ adding to the fact that you
hope to 'be a business' after the spending for a cruise trip.

You need to find a good tax accountant and listen to what he/she has to
offer.

Good luck!
= = =
Carlo Coggi wrote:
I am an advanced amateur photographer and will be taking an 'extreme
adventure' vacation this summer. A friend of a friend is editor of a
well-known travel magazine who heard about my somewhat unique vacation
and said that the magazine would be interested in seeing a spec
article/photos about the trip.

Business/Tax Question:

Two months ago I sold my Canon 10D and bought a 30D and some related
camera gear. If my photos and text are accepted for publication, can I
then form a sole proprietorship or corporation and *retroactively*
write-off the cost of my gear and trip?


  #2  
Old May 23rd 06, 01:14 AM posted to rec.photo.misc,rec.photo.digital,rec.photo.equipment.35mm,rec.photo.technique.art
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Default Writing off gear?


"Rita Ä Berkowitz" ritaberk2O04 @aol.com wrote in message
...
Jerry L wrote:

Income tax write-offs: generally, if you have income to buy
equipment, you must also put the income into your income taxes. That
includes a sum of $$$s for self-employment taxes and social security
taxes. If, after gifting the I.R.S. some of your money, the I.R.S.
is kind, you may be able to 'write-off' a portion of your equipment.
The travel part of your trip is a different story __ adding to the
fact that you hope to 'be a business' after the spending for a cruise
trip.

You need to find a good tax accountant and listen to what he/she has
to offer.


The answer to his question is *NO* he can't. If he bought this equipment
for personal use, which he did, then he is stuck. If he bought the
equipment to be used for his "photography" or "eBay" business than it is
figured into the equation. Of course, he will also be able to back up all
claims if/when he gets audited.

I agree, consult an accountant.

Yes. The key to his statement above is, if he has an income to begin with,
then he may be able to write the equipment costs off on it. but if he is
operating a hobby, then there is no income to write anything off against.
first, you have to earn something using your equipment, then you can write
off it's cost. If you make your living as a tinker, tailor, or candle stick
maker, then you can't write off your cameras against your income, even if
you do make an odd dollar or two from your pictures. You can only write off
your photographic equipment against income you earn through photography.


  #3  
Old May 23rd 06, 04:13 AM posted to rec.photo.misc,rec.photo.digital,rec.photo.equipment.35mm,rec.photo.technique.art
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Default Writing off gear?

Rita Ä Berkowitz wrote
(in article ):

Jerry L wrote:

Income tax write-offs: generally, if you have income to buy
equipment, you must also put the income into your income taxes. That
includes a sum of $$$s for self-employment taxes and social security
taxes. If, after gifting the I.R.S. some of your money, the I.R.S.
is kind, you may be able to 'write-off' a portion of your equipment.
The travel part of your trip is a different story __ adding to the
fact that you hope to 'be a business' after the spending for a cruise
trip.

You need to find a good tax accountant and listen to what he/she has
to offer.


The answer to his question is *NO* he can't. If he bought this equipment
for personal use, which he did, then he is stuck.


Incorrect. If he decides to formulate a business after the
initial purchase, he can transfer the assets into the company
and treat them as any other capital equipment expense made after
the formation. The IRS doesn't employer mind readers yet,
AFAIK. Whether a sole proprietorship, partnership or a
corporation, you can acquire assets prior to the creation of the
entity and transfer or sell them to the 'business' at a later
time.

I agree, consult an accountant.


Always good advice.

--
Randy Howard (2reply remove FOOBAR)
"The power of accurate observation is called cynicism by those
who have not got it." - George Bernard Shaw





  #4  
Old May 23rd 06, 05:33 AM posted to rec.photo.misc,rec.photo.digital,rec.photo.equipment.35mm,rec.photo.technique.art
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Default Writing off gear?


"Rita Ä Berkowitz" ritaberk2O04 @aol.com wrote in message
...
Randy Howard wrote:

The answer to his question is *NO* he can't. If he bought this
equipment for personal use, which he did, then he is stuck.


Incorrect. If he decides to formulate a business after the
initial purchase, he can transfer the assets into the company
and treat them as any other capital equipment expense made after
the formation. The IRS doesn't employer mind readers yet,
AFAIK. Whether a sole proprietorship, partnership or a
corporation, you can acquire assets prior to the creation of the
entity and transfer or sell them to the 'business' at a later
time.


Of course he can do *anything* if done correctly and properly worded, but
he
is walking a fine line with this one. He really needs to get a plan
together and figure out what he wants to do then take this to a competent
accountant. Going by the OP's initial post of what he's trying to
accomplish would be more of a detriment to him and possible create more
hardship. For instance, just depreciating the equipment. Was it bought
last month, last year, or 10-years ago? And as I said earlier, " If he
bought the equipment to be used for his "photography" or "eBay" business
than it is figured into the equation. Of course, he will also be able to
back up all claims if/when he gets audited." In his case as described,
the
benefits don't outweigh the risks, so I'll say stick with no.


If I were to start a photography business, I could "sell" my photographic
equipment to the business, but not at the new price....I would have to price
it at the current market's used rate....I could however, begin depreciating
it starting at that price.


 




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