What does a DM make

[rsldonk]

What kinds of things are "written off" , and what kind of money are we talkin' about here Really? I've heard you can do this too, but I've also heard Republicans are for smaller government so... *shrugs*...

Direct business expenses. So having to get professional level insurance, having to get gear you would not normally have other than required to teach classes. Fuel to get to dive sites that is not otherwise reimbursed. Stuff like that. There is a bit of wiggle room here, but if you claim every piece of gear you buy, you will possibly trigger an audit. Don't get greedy and you can claim quite a bit, but just remember if you get an audit, you need to be able to justify it as a legitimate business expense

 

[Mike Boswell]

I've no idea what a DM makes, but two weeks ago, our little group of divers in Roatan (Fantasy Island) had a discussion about how much to tip our DM. We were typically doing 3 boat dives per day, and our DM was doing a fine job making sure everyone (6 - 10 divers) was safe and happy. The consensus was that a tip of $10.00 per person per day was about right.

 

[diver 85]

Fulltime DM in Roatan about 10 years ago ~ 300 US/month.....Now days, have no idea...

 

[Brian Sharpe]

Locally DMs make free air and get discounts on their gear (and they get to write off some of their gear for tax purposes). The ones I know do it because they love diving and enjoy working with new students (around here that's what they do - assist with classes).

 

[Thalassamania]

If you are not paid, how do you write anything off?

 

[Scott L]

If you are not paid, how do you write anything off?

That's a subject for the DM's who actually file a return. Less than 10% IMO...

 

[Thalassamania]

My point is that this "deductible" thing is a myth. When you have an income from something then the money that you spend to create that income becomes deductible. But if you have no income stream from that activity, then you have no deduction.

 

[rsldonk]

My point is that this "deductible" thing is a myth. When you have an income from something then the money that you spend to create that income becomes deductible. But if you have no income stream from that activity, then you have no deduction.

That's what I was trying to say, but was probably not clear as I assumed that if someone was writing things off, they could prove some sort of income. One point also is to not show a consistent loss. At some point, the IRS says that if you lose money doing something it is no longer a business but a hobby.

 

[Scott L]

My point is that this "deductible" thing is a myth. When you have an income from something then the money that you spend to create that income becomes deductible. But if you have no income stream from that activity, then you have no deduction.

This is premised upon no reported income at all which is an erroneous blanket statement. Even though most DM's are not employees of an LDS this does not shield them from having to report earned income. However, I would certainly not file a return if this was my only income...

Should they nevertheless file a return their top marginal rate would be so low as to render expense deductions virtually non consequential as it relates to federal income tax. The shielding of the full measure of FICA taxes would be the biggest benefit of deductions. Don't ask me about state taxes as Florida does not have one.

 

[Mike Boswell]

This is premised upon no reported income at all which is an erroneous blanket statement. Even though most DM's are not employees of an LDS this does not shield them from having to report earned income. However, I would certainly not file a return if this was my only income...
Should they nevertheless file a return their top marginal rate would be so low as to render expense deductions virtually non consequential as it relates to federal income tax. The shielding of the full measure of FICA taxes would be the biggest benefit of deductions. Don't ask me about state taxes as Florida does not have one.

What? ... And give up your Stimulus Payment?

Do You Need to File a Federal Income Tax Return?