Anybody ever use scuba gear for a tax deduction?

[Dryglove]

Thanks for the excellent replys everybody.

I have a question for divesherpa.By becoming a divecon could one still do the deductions you described or do you have to be an instructor?

 

[Divesherpa]

I'm not sure. I became an instructor the same year that I became a divemaster. I did write off divemaster training. Do divemasters get paid? I think the potential to make money has to exist for it to be a business. I run trips (technical and recreational) and this is where most of the money is generated. You could do this as a divemaster as well. You wouldn't be able to write off housing, vehicle depreciation (maybe you could), and things of this nature.
Hope this helps,
Cheers

 

[DNAXdiver]

You really ought to have income before you can start deducting. If you are bringing in income from diving, then its easy to deduct it. It's a lot harder if you aren't, though doable.

Accountants pull all sorts of tricks, many of which are not legal, but they know odds are you/they won't get caught. However hobby businesses are a traditional red flag for auditors, so before trying something a little iffy, like deducting dive gear, take a minute to thing whether you have other tax liabilities that might be discovered if they audited you.

 

[The Chairman]

which makes it a professional level status... If you do it right you can deduct while Divemaster... I sure did!

 

[rstone]

Originally posted by DNAXdiver
You really ought to have income before you can start deducting. If you are bringing in income from diving, then its easy to deduct it. It's a lot harder if you aren't, though doable.

You dont have to have imcome to deduct. It just had to be a legit business expensive. Their are many businesses who spend a great deal of money to start a business only to find out they ran out of money before getting it off the ground. That is considered a business loss and is tax deductable.

Ryan Stone

 

[DNAXdiver]

Which is why I said "you really ought" and "doable". That is to say, yes you can deduct, but the less evidence of a real business - and income is one of the best - the less chance of trouble should you be audited. If all you have is an instructor or DM card and a bunch of bills for fancy SCUBA gear bought at retail the less chance.

But what the hell that doesn't mean one shouldn't try it, if you have a card and can prove you've been actively looking for related work/customers (call up all the dive shops, keep a phone/visit log of contacts, print up some fliers etc) the worse that is likely to happen is have the deduction disallowed and have to pay some extra taxes.

Originally posted by rstone


You dont have to have imcome to deduct. It just had to be a legit business expensive. Their are many businesses who spend a great deal of money to start a business only to find out they ran out of money before getting it off the ground. That is considered a business loss and is tax deductable.

Ryan Stone

 

[WreckWriter]

Write a diving book. Then you have diving related income and justification to deduct expenses.

Tom

 

[srkdvr]

I just finished up getting my Dive Con with SSI... other places call it Dive Master, the Instructor I was working with has been doing this for a long while and he told me to make sure I start writting off my gear on my taxes. He also said I can go back as far as 3 years, and he uses an accountant. It is like others have said, your in the professional field now, not just the sport.

Rich :mean:

 

[tinman]

I'm self employed and was planning on adding this to my service offering. I share some of the above users concerns. Being Canadian EH!, I have to be more resourceful than my friends to the South when it comes to Taxation. I would be curious if anyone feels that they could deduct expenses prior to DM, Instructor level activities. I've heard both views but have never heard from someone that has been audited in Canada or the USA...

 

[tinman]

I'd like to know more about this. Can't seem to get a private message off to Rondo. Lists disabled by administrator??? TexasMike can you give me a hand. What a great idea!