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#1
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Does anyone write off their tank expenses?
Hi guys,
Does anyone write off your aquarium expenses or energy that it costs to run your tanks? Just wondered if there was a way to do it.
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I used to call this a hobby. An addiction is a more appropriate term now. |
#2
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Can't do that, Dan would know how much everything cost.
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~Debi~ Powertripping~is that a song or a dance? RC Lounge~Humor Questionable ~Enter At Own Risk! |
#3
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I write it off to being an oddball....
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Owner of the Hubble Telescope. |
#4
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good choice...
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~Debi~ Powertripping~is that a song or a dance? RC Lounge~Humor Questionable ~Enter At Own Risk! |
#5
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ummm what section of the 1040 would you file a hobby using expendable income ? how are you planning on using that as a justifiable expence?
Try it and if we don't see you around we'll know why
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Does the search engine make Carrie's butt look big? - BrianD “The true man wants two things: danger and play. For that reason he wants woman, as the most dangerous plaything.” - Friedrich Nietzsche |
#6
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HA! if you ever figure that one out let me know.
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"I wanna know what I've been hiding, in my shadow"-m.j.k. "well here we are, Mr. Pilgrim, trapped in the amber of this moment. There is no why." |
#7
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Only way is as a hobby selling corals
You need to make a profit 3 years out of 5 Then can write off deductions So 2 years you can lose money & claim expenses The other 3 years you must claim a profit & pay taxes Very hard to makea profit selling enough corals to offset expenses unless you do it on a large scale......which raises expenses...and takes the fun out of it |
#8
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In addition, if you somehow DON't make a profit during those 5 years, they audit you and nail you for back taxes.
It is do-able to write off the tank expenses (and mileage to inland aquatics, and the national reef conventions), but it's a bit of a gamble if you don't make a profit.
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Learn from the mistakes of others. You haven't got time to make them all yourself. |
#9
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I am thankful for advice like the above. It keeps me in business. Of course, it also keeps the IRS employees employed.
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Always strive for the optimum environment, not the minimum environment. Some days you're the dog, other days you're the hydrant |
#10
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I think you could probably deduct a display tank at work in a waiting area for clients etc.
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#11
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Isn't that basically what everyone else said??? I bet dudesters 450g office reef tank was fully deductible, you guys and gals that have offices your allowed to decorate them.. your also allowed to write off the cost of decoration DUH DUH DUH |
#12
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What?
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Always strive for the optimum environment, not the minimum environment. Some days you're the dog, other days you're the hydrant |
#13
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Quote:
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#14
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Pass the vodka that you're pouring into your OJ this way please.
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Too young for Medicare Too old for women to care |
#15
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I believe hobby expenses are deductible, as long as they don't exceed hobby income (IOW, no loss against total income).
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Until one has loved an animal, a part of one's soul remains unawakened. ~ Anatole France (1844-1924) |
#16
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Until one has loved an animal, a part of one's soul remains unawakened. ~ Anatole France (1844-1924) |
#17
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The main fallacy is the belief that a certain number of years of income/loss can cause an activity to be deemed a hobby or a business. You don't "have" to make a profit to be a profit-motivated business (look at Chrysler).
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Always strive for the optimum environment, not the minimum environment. Some days you're the dog, other days you're the hydrant |
#18
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No, and while I agree that the "making profit in 3 out of 5 rule" is more anecdotal than factual, Chrysler isn't a good analogy here either. For someone that wants to make a business out of their hobby to help support/defray the costs, I think the above "rule" isn't unrealistic. If you started such a business and go 2-3 years with a loss, I would think the IRS is going to ask why you are continuing to pay out of pocket to stay in business.
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Until one has loved an animal, a part of one's soul remains unawakened. ~ Anatole France (1844-1924) |
#19
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It isn't an "anecdotal" rule. It is a standard the IRS uses to shift the burden of proof from the IRS to the taxpayer. It won't come into play unless there is some evidence that the activity is likely a hobby.
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Always strive for the optimum environment, not the minimum environment. Some days you're the dog, other days you're the hydrant |
#20
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Is it a written rule in an IRS publication?
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Until one has loved an animal, a part of one's soul remains unawakened. ~ Anatole France (1844-1924) |
#21
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I'm going to jump on the bandwagon and say...."huh?" Could you, perhaps, check your punctuation and edit a little bit so the rest of us could understand what you are trying to convey? I would definately think that the inital cost and maintenance of a tank in a doctor's office would be fully deductable.
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Learn from the mistakes of others. You haven't got time to make them all yourself. |
#22
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If you are self employed and have the tank in your office cant you write it off as a decoration? I know I wrote off the paintings in my home office as decorations...never asked about the tank though...
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-Dave- |
#23
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In other words, if it is demonstrated that you truly have the intent and the ability to make a profit, you can avoid the hobby loss limitations. As an example, let's say you are a professional model-airplane flyer. You spend thousands and thousands of dollars on equipment, but your only hope for any revenue is the $50 grand prize at most contests. Even if you enter a contest every week and win every one, you have no hope of ever covering your expenses. In those facts and circumstances, you are deemed to be engaged in a hobby and the expenses are not deductible. If you change the circumstances a bit, and you also modify and build your airplanes, and you take them to competitions in hopes of selling your designs. You have years of experience in flying airplanes, and you have set up separate bank accounts for your business. You engage professional advice on how to best market your talents and your products. In those facts and circumstances, even if you lose money every year for 20 years, you would not necessarily be deemed a hobby.
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Always strive for the optimum environment, not the minimum environment. Some days you're the dog, other days you're the hydrant |
#24
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Quote:
__________________
Always strive for the optimum environment, not the minimum environment. Some days you're the dog, other days you're the hydrant |
#25
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PS "reasonable and customary" are IRS words that they don't define. Much of income tax law is in a definite shade of gray.
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Always strive for the optimum environment, not the minimum environment. Some days you're the dog, other days you're the hydrant |
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