Tax write off

[Robert Renfrow]

I searched through the threads and read some really old post on the topic and looking for updated advice here in the US. I recently became a dive master last year and am active on a dive boat, on top of that I run a YouTube channel “active Duty outdoors” where I make diving content (fully monitized). I recently serviced my gear ($400) and purchased a drysuit ($3100) and am finishing my AN/DP coarse ($1800), can any of this be written off? Either for being a dive profession or for my YouTube channel? I won’t even ask about my trip to the Red Sea last year… I know the best advice is from a tax pro but thought some here might have recent experience. Thank you for your thoughts and time.

Rob

 

[mmerriman]

talk to an accountant. at some point if all you do is post losses the IRS declares it a hobby

 

[NW Dive Dawg]

When I was teaching I formed a separate LLC which meant a separate tax filing then used a Quickbooks program to track expenses, profits, etc. When starting a new dive professional business, I don't think it's a red flag at all that you would have a lot of upfront equipment and training business expenses that exceed any profits.

Once you have the LLC then have a completely separate bank account, company credit card, etc......and keep EVERYTHING separated from your personal assets and finances.

Where it can get dicey is if you are writing off trips..... or commingling business and personal expenses.

 

[Lorenzoid]

talk to an accountant. at some point if all you do is post losses the IRS declares it a hobby

Exactly.

Here's what the IRS says: Here’s how to tell the difference between a hobby and a business for tax purposes | Internal Revenue Service