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Writing off gear?
Carlo Coggi wrote:
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? It depends where you are and what the tax code says. Here (Quebec) you can incorporate and transfer used capital equipment declared at a reasonable market value on the day of incorporation and then depreciate that value at 20% per year (for 5 years) as long as it's in the company. For registered (non-incorporated) entities I'm not sure. Travel costs under any business are costs, period. For any of the above to be useful, you have to make more money than expenses, of course. Forming a company for the sole purpose of avoiding personal taxes is not usually legal. |
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Writing off gear?
"Alan Browne" wrote in message ... Carlo Coggi wrote: 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? It depends where you are and what the tax code says. Here (Quebec) you can incorporate and transfer used capital equipment declared at a reasonable market value on the day of incorporation and then depreciate that value at 20% per year (for 5 years) as long as it's in the company. For registered (non-incorporated) entities I'm not sure. Travel costs under any business are costs, period. For any of the above to be useful, you have to make more money than expenses, of course. Forming a company for the sole purpose of avoiding personal taxes is not usually legal. Not only not legal, but very hard to do....I tried it many years ago....the IRS will soon find you out, and call it a "Hobby" and not allow you to deduct anything for it. they know it's a hobby, as soon as you go a couple of years in a row without making a taxable profit.....Anyone who continues in business at a loss is really operating a hobby, and not a business. If you break even, then they will leave you alone. If you make a profit, and don't pay them any taxes on it, they may still leave you alone, until they audit you and find out, but if you operate at a loss, and try to get money out of them, then watch out....That's where they draw the line...:^) |
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