taxes and diving

[chironomidkraut]

This may be a odd question but can u write off scuba gear, or scuba classes?
I heard u can take the padi open water through the college, or university, and to me thats kinda furthuring your education wich means tax write off, right??
In the up comming years i am gunna go for my assistant open water instructor course and to do this you need to have your own gear, which i do, i just bought, and get all the courses prior to the instructor course, and its gunna be a part time gig after my full time job, in the evenings..... so its kinda bettering yourself to make money in the end right? But what does the goverment think bout all this? anybody ever try to get a write off for the addicting sport we all love?

 

[lulubelle]

This may be a odd question but can u write off scuba gear, or scuba classes?
I heard u can take the padi open water through the college, or university, and to me thats kinda furthuring your education wich means tax write off, right??
In the up comming years i am gunna go for my assistant open water instructor course and to do this you need to have your own gear, which i do, i just bought, and get all the courses prior to the instructor course, and its gunna be a part time gig after my full time job, in the evenings..... so its kinda bettering yourself to make money in the end right? But what does the goverment think bout all this? anybody ever try to get a write off for the addicting sport we all love?

I'm sure if you can prove that it is part of job related training, that you can write it off.

I wonder if I can write it off under the category of "stress management and relaxation" though lately, scuba world has not brought much of that.

 

[TMHeimer]

You may check the Going Pro sub forum--I believe it has been discussed in depth there. From my recollection, the general consensus is you can't deduct anything that is purely recreational. Ei., you would need to become a DM at the least, and deduct expenses against your specific costs related to divemastering work only. Maybe you could do something regarding other types of work, like cleaning boat bottoms, checking traps set by fisheries, etc.--I know that nobody ever just does this for cash under the table.... Doubt you could work anything regarding taking non-pro courses through university for credit. A real biggee seems to be that generally scuba is regarded as a hobby and costs for that aren't deductible. I do believe also that if your actually diving for pay you can only deduct expenses against that money--not against your total seven figure yearly income. Best bet is check with an accountant.

 

[40Fathoms]

I have done some work where diving was part of it (writing articles for mags and so on), and I've written off some gear purchases in relation to that on my income tax statement. I do have my own company for when I do these things, though, so that may put me in specific situation. Also, tax laws vary from state to state in the U.S. and from country to country.

 

[elan]

I believe if you are doing commercial diving course then you can. Last time I spoke to my wife about this I believe she told me that you can write off the expenses against the earnings you have made using this course or equipment.

 

[mooney]

This may be a odd question but can u write off scuba gear, or scuba classes?
I heard u can take the padi open water through the college, or university, and to me thats kinda furthuring your education wich means tax write off, right??
In the up comming years i am gunna go for my assistant open water instructor course and to do this you need to have your own gear, which i do, i just bought, and get all the courses prior to the instructor course, and its gunna be a part time gig after my full time job, in the evenings..... so its kinda bettering yourself to make money in the end right? But what does the goverment think bout all this? anybody ever try to get a write off for the addicting sport we all love?

Basically what TMHeimer said...

I asked the same question to my tax man. According to the last 2 tax professionals I used, the classes you take towards divemaster/instructor and gear can not be deducted. You are not a professional yet in the field earning an income from it. However once you take and pass the divemaster/instructor rating you can deduct that cost of the rating from your taxes and future equipment and education costs. They basically state that you can't look ahead and plan on becomming a diving professional, you have to be a diving professional before the writeoffs become legit. As far as the government is concerned it is just a hobby until you are a divemaster/instructor.

 

[Doc]

Sure.

Start a Newsletter or a Website/Message Board.

 

[rstofer]

Basi

They basically state that you can't look ahead and plan on becomming a diving professional, you have to be a diving professional before the writeoffs become legit. As far as the government is concerned it is just a hobby until you are a divemaster/instructor.

So, start a hull cleaning company, derive some income from it, have equipment expenses against it and you should be good. You don't have to be a DM or Instructor to be a hull diver. And you don't need to make a profit for a number of years and you can simply close the business before you run out of time. Losses are losses. Of course, there is the issue of expense items versus investment items which require depreciation. But individual items of scuba equipment can probably be expensed.

Now it gets tricky (and you really need an expert): suppose you decide your company should get in the diver training business (you want to become an instructor). This training doesn't change the overall theme of what your are doing (diving) and, in my wholly unqualified opinion, should be deductible. You are expanding an existing business.

If you take training to change the way you make your living, it isn't deductible. Again, in my unqualified opinion.

Certain occupations (like Law Enforcement) can write off things like uniforms and equipment. Ordinary workers can't do this because their work clothes can be used in other settings.

Some folks may reallize that it is tax season. So, if you use a paid preparer, ask them.

Richard

 

[elan]

So, start a hull cleaning company, derive some income from it, have equipment expenses against it and you should be good.

You think the price of the OW course and a couple of regulators are worth the hassle of opening and maintaining the company

 

[Mark Michaud SELAUSAR]

You think the price of the OW course and a couple of regulators are worth the hassle of opening and maintaining the company

Or an IRS audit.....................new administration. Expect the old Gestapo like tactics to return.