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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 $$$s for self-employment taxes and social security taxes. If, after gifting the I.R.S. some of your money, the I.R.S. is kind, you may be able to 'write-off' a portion of your equipment. The travel part of your trip is a different story __ adding to the fact that you hope to 'be a business' after the spending for a cruise trip. You need to find a good tax accountant and listen to what he/she has to offer. Good luck! = = = Carlo Coggi wrote: I am an advanced amateur photographer and will be taking an 'extreme adventure' vacation this summer. A friend of a friend is editor of a well-known travel magazine who heard about my somewhat unique vacation and said that the magazine would be interested in seeing a spec article/photos about the trip. Business/Tax Question: Two months ago I sold my Canon 10D and bought a 30D and some related camera gear. If my photos and text are accepted for publication, can I then form a sole proprietorship or corporation and *retroactively* write-off the cost of my gear and trip? |
#2
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Writing off gear?
"Rita Ä Berkowitz" ritaberk2O04 @aol.com wrote in message ... Jerry L wrote: Income tax write-offs: generally, if you have income to buy equipment, you must also put the income into your income taxes. That includes a sum of $$$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
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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
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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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