Hypothetical question: If a student goes from basic to dive master in a year, and begins working paying income tax on his earnings, would not then the cost of training and equipment be tax deductible?
Tax Deductible
- Thread starter Don Wray
- Start date
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The cost of equipment purchased in the year that you work as DM, any agency dues, and the cost of insurance for the year are all tax deductible. The cost of training I dont believe is deductible.
I believe that if you were to find a job as a divemaster that payed enough to worry about the cost of insurance, agency fees, travel including mileage, hotel bills that are not reimbursed, and expendible supplies and equipment can be counted. It will be between you and your tax attorney or CPA as to whether you could or should count cost of training.
Non-expendible supplies and equipment would have to be depreciated.
But you understand that I am not a tax attorney and even though I did play one on TV once I would get myself a real one or a CPA to get advice from. One that signs on the bottom line that they will represent you if the IRS picks you to come visit them.
Non-expendible supplies and equipment would have to be depreciated.
But you understand that I am not a tax attorney and even though I did play one on TV once I would get myself a real one or a CPA to get advice from. One that signs on the bottom line that they will represent you if the IRS picks you to come visit them.
I would also think that to be completely above board you would have to use your scuba equipment strictly for work and not sometimes for pleasure. I don't think you can apportion the cost between work and pleasure. I'm not a CPA either so don't reply on my opinion
gcbryan:I would also think that to be completely above board you would have to use your scuba equipment strictly for work and not sometimes for pleasure. I don't think you can apportion the cost between work and pleasure. I'm not a CPA either so don't reply on my opinion
I know you said you're not a CPA, but I have to politely disagree with this. No offense intended...I'm just making an attempt to illustrate what you said.
Based on your statement, I cannot write off my equipment purchases if I take a diving vacation. I use my equipment for professional purposes roughly 350 days a year, minus days off...but because I take 14 days vacation to another dive destination for pleasure I can't write my equipment off? I guess I better buy a new set of equipment for pleasure I.
OP
I am retired and have a decent pension coming in (still have a way to go to get Social Security, if there is any) so anything I earn above that will increase my tax liability was the reason for the question...I am in negotiations with an LDS nearby that wants to expand into this area because there are no LDS's within 60 miles...I would work the shop and help with instruction and assist with dive trips arranged by the shop, etc. until I get my OWSI, hopefully, sometime next year.
Don Wray:
Not to get off on a different subject, but until you are a DM...and insured, you should not be assisting with students, unless you are just referring to paperwork, lugging tanks, etc. The liability ramifications if you wer to be "teaching" or supervising divers in the pool or open water would be great. Aside from the liability, it would be a serious standards violation for the instructor to be using you as a teaching assistant...if that is what you are referring to.
DeputyDan
Contributor
I am a CPA and the answer to your question as worded is no you can not deduct.
The problem is that the training is to prepare you for a "new" career not to increase or enhance your ability to perform the job you are currently in.
The deductibility issue has to do with enhancing existing job skills versus developing skills in a new area.
That's why most folks can not deduct their college education but can deduct continuing education once on the job.
The problem is that the training is to prepare you for a "new" career not to increase or enhance your ability to perform the job you are currently in.
The deductibility issue has to do with enhancing existing job skills versus developing skills in a new area.
That's why most folks can not deduct their college education but can deduct continuing education once on the job.
DeputyDan:
Can you answer the equipment write off question?
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