I was just thinking. Income tax write off
07-12-2002, 08:00 PM
#1
Thread Starter
I was just thinking. Income tax write off
I was just remembering what my tax guy said to me and was wondering if anyone has done it. He told me that I could use this hobby as a Tax write off. Has anyone done it before. 
Just curious,
David Elizondo
Just curious,
David Elizondo
07-12-2002, 08:38 PM
#3
write off
I have but I was building for people but doing it small time. since you dont need a tax stamp for a building business for planes you have to claim it on your personal taxes. You must do the following to be legal:
1. Keep every reciept
2. keep track of money coming in
now not that I have ever done it before but you can claim a loss for 7 yrs for a business then it must be declared a hobby so you safe there now as long as you show some money coming in it is considered a business and a write off. you can also not take any money in the first year count it as a loss and be ok as you are "Setting UP " the business and there are startup and construction costs but after that you better show something coming in.
Now I am not an accountant nor a tax expert but this is what I was told by an accountant and had no problems with the IRS and even had an audit butI also had a taxidermy business and got hit with a random audit not that they found anything suspicious and the auditor told me I did a good job documenting my records and he wished everyone did as well so i must have been something right hehe Knock on Wood and i had claimed a loss for the 5 yrs before he audited me.
Joe
PS If you make less than $500 in your home busines you do not have to claim it but hen if you dont claim it how can you deduct supplies? ..... Just food for thought
1. Keep every reciept
2. keep track of money coming in
now not that I have ever done it before but you can claim a loss for 7 yrs for a business then it must be declared a hobby so you safe there now as long as you show some money coming in it is considered a business and a write off. you can also not take any money in the first year count it as a loss and be ok as you are "Setting UP " the business and there are startup and construction costs but after that you better show something coming in.
Now I am not an accountant nor a tax expert but this is what I was told by an accountant and had no problems with the IRS and even had an audit butI also had a taxidermy business and got hit with a random audit not that they found anything suspicious and the auditor told me I did a good job documenting my records and he wished everyone did as well so i must have been something right hehe Knock on Wood and i had claimed a loss for the 5 yrs before he audited me.
Joe
PS If you make less than $500 in your home busines you do not have to claim it but hen if you dont claim it how can you deduct supplies? ..... Just food for thought
