Does anyone write off their tank expenses?

[dkh0331]

[hubris007]

Originally posted by BrianD
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.

I don't think Brain is a very good financial consultant. I would think if you were winning $50 grand as a prize every week it would more than cover expenses. But i'm a veterinarian. What do i know.



Edit: having disparaged Brain, i do have a couple questions.
Fist) If i were to be said modeller, what if there really were a 50K prize offered once a year. I dump 10K a year into the hobby with the aspiration of winning the 50K prize. How long could i do that without winning the prize without getting nailed?

B) if i know it's a hobby and it's not for the purposes of earning oney, do i really need to report the $300 or so i might make selling corals each year when taken in light of the thousand dollars in expenses to get there?

[BrianD]

1) If the prize was not offered at random (i.e. a lottery), and you have a reasonable chance of winning, I think you would have a fair chance at the deduction being allowed. It would be similar to the struggling professional golfer attempting to hit the big time while spending thousands on lessons, travel, etc. Again, however, you have to have a reasonable expectation of making a profit. If you have a 1 in a 10,000 chance of winning, I wouldn't say that is "reasonable". If you are one of the top modelers in country and one of only a few who could win the contest, I think you have a "reasonable" expectation.

2) No, you don't need to report the income. It is similar to having a garage sale.

[BrianD]

PS These are all judgment calls, and your IRS agent may vary.

[jpfelix]

Originally posted by BrianD
PS "reasonable and customary" are IRS words that they don't define. Much of income tax law is in a definite shade of gray.

or is it grey?

[GSMguy]

Originally posted by hubris007
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?

what I meant is if it is a reasonable expense it should be deductible. If you have an office tank it should be deductible as long as the money spent on it is in line with what you spend to keep the office Running.


Think about how many businesses have fish tanks they pay thousands a year to keep maintained, do you think that doing that work yourself makes it less of a part of the business?

[BrianD]

GSM, what is your background in income tax law?

[GSMguy]

Originally posted by BrianD
GSM, what is your background in income tax law?

no background,


Are tax deductions something you need to be a CPA to discuss?


lol

[beerguy]

Originally posted by GSMguy

Are tax deductions something you need to be a CPA to discuss?

Yes. It's a new rule here.

[dc]

Originally posted by beerguy
Yes. It's a new rule here.

And it does add a little credibility to it....

[BrianD]

Originally posted by GSMguy
no background,


Are tax deductions something you need to be a CPA to discuss?


lol

No, but advice is more useful if it is offered with some degree of knowledge of the subject matter, rather than being nothing more than uninformed blather.

[BrianD]

Originally posted by GSMguy
no background,

Knock me over with a feather.

[GSMguy]

Harsh, All i meant to say was office tanks can be deductible.

[pnosko]

Originally posted by dc
And it does add a little credibility to it....

As if that was ever a requirement to post here.

[hubris007]

Originally posted by BrianD
No, but advice is more useful if it is offered with some degree of knowledge of the subject matter, rather than being nothing more than uninformed blather.

Hisssss.

[Levi_S]

i don't understand what the bugs mean...?

;-)

[drauka99]

Originally posted by Levi_S
i don't understand what the bugs mean...?

;-)

hissing roaches is my guess

[dc]

Originally posted by pnosko
As if that was ever a requirement to post here.

Well it sounded good didn't it?

[2fishy]

Is the cost of a tank & equipment ever tax deductible? Ever? I have been told that it would be. So I am curious about it also.