Having hard time finding answer to this business tax deduction questions.

[fuzzybabybunny]

The rule is that you can deduct up to $5000 of your start up expenses during your first year of business. Start up expenses are classified as expenses incurred before the business actually starts existing. So if you want to start a photography business, go out and buy $5,000 worth of stuff, and then start your business afterwards, you can deduct this amount from your taxes.

But what if I already had all this stuff before even entertaining the thought of using these assets in a business? I had my camera, lenses, and computer before officially starting my photography business and even before I decided to start a business. Can these still be deducted?

I'd rather not pay to talk to a CPA for every little clarification like this...

 

[xSauronx]

Originally posted by: fuzzybabybunny

I'd rather not pay to talk to a CPA for every little clarification like this...

make a list and get an hour of time from one, then.

im gonna guess no, unless you can creatively doctor some receipts in the event of an audit....which is technically no but you might be able to pull it off.

or....have the business buy the equipment from you?
/no idea if thats a good idea

 

[Capt Caveman]

No

 

[fuzzybabybunny]

Originally posted by: xSauronx

Originally posted by: fuzzybabybunny

I'd rather not pay to talk to a CPA for every little clarification like this...

make a list and get an hour of time from one, then.

im gonna guess no, unless you can creatively doctor some receipts in the event of an audit....which is technically no but you might be able to pull it off.

or....have the business buy the equipment from you?
/no idea if thats a good idea

Hmmm... I'm wondering if this WOULD work, because as of now none of the equipment is on my books. If you took just my books and looked at my expenses, you would have no idea how this photography business is even functioning because there is a glaring lack of any photography gear in them. Or computer equipment.

 

[AccruedExpenditure]

You can write off 'anything.' The question is will you be flagged for audit.

 

[Syringer]

Originally posted by: AccruedExpenditure
You can write off 'anything.' The question is will you be flagged for audit.

That's implied.

 

[AccruedExpenditure]

Originally posted by: Syringer

Originally posted by: AccruedExpenditure
You can write off 'anything.' The question is will you be flagged for audit.

That's implied.

Spider.

 

[LiLRiceBoi]

Depends how you report it. I used to work in a public accounting office. If you know what you're doing, you can do most things you want. You just need to know what you're doing so you can post the transaction in your books and report it legitimately.