Subject: Re: 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.
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...:^)
View All Messages in rec.photo.misc
Writing off gear? =>Re: Writing off gear? =>
Copyright © 2006 WatermarkFactory.com. All Rights Reserved.