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Subject: Re: Writing off gear?



Rita Berkowitz wrote
(in article <1274iba58m77f73@news.supernews.com>):

> 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






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