taxes and diving

[TMHeimer]

Yes, I've looked into that a while back and found it to be true for sure.

 

[diver 85]

You can write off anything ---you want to---just don't get caught if it's ,well, let's just say gunna cause you to 'cheat'.....uncle don't like that....

 

[Thalassamania]

The problem is that a write-off of this sort is rather worthless unless it is against the profits of a company that is actually making money.

 

[Papa_Bear]

If you are training for a required Certificate or License you may qualify for a Hope or more likely a Life time learning credit including equipment and lab fees! See: Hope and Lifetime Learning Credits

 

[Papa_Bear]

To the OP you have a lot more leeway when doing things in collage to get credits and to "Write off equipment for a class" after school it is a different story and the IRS has a business test to make sure it is not "Just a Hobby" and a real business! If it is losses are permitted to a limited time and amount! In the US you must Amortize certain equipment over the life of the equipment! If your a public safety diver you may have write offs for equipment! If what you do is a hobby then not so much, if it is a business or for the good of the public then it is probably a go!

 

[Cajuncru Diver]

You can write off anything ---you want to---just don't get caught if it's ,well, let's just say gunna cause you to 'cheat'.....uncle don't like that....

Exactly, if you show exactly what it is there is no fraud, so worse case scenario is the IRS denies the deduction if you are audited and then you have to pay the tax, penalty and interest.

 

[mooney]

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

However I was addressing the OP who made it clear he only wants to go get his assistant instructor and then teach part time, not clean hulls, u/w weld, lobster poach etc. which is why I didn't bring that up. And also why I mentioned those words came straight from the mouth of my 2 professional tax preparers and if the ONLY reason you want to start a hull cleaning company or other professional diving endeavor is to wite off a PADI open water, advanced, a handfull of specialty courses, and $2000 of gear, well, then, take that economic risk, but I don't think it'll be worth the cost of writing off $3500 training/gear...!

 

[Avonthediver]

I have my business license for under water salvage and as long as you have a tax id number you can write off your gear one time. and then clame like a normal business.

 

[Papa_Bear]

You can always get help from IRS in the last study they were right 62% of the time! Of course they audit three years at a time and three years of doing it wrong will be a pretty big hit seeing interest can double the shortage in 3 years! So do it right the first time

 

[Papa_Bear]

I have my business license for under water salvage and as long as you have a tax id number you can write off your gear one time. and then clame like a normal business.

You must have called IRS????!!!!

A license just means a government agency got in your pocket! And everyone has an ID number in the US it's called a Social Security number! A Tien or Fien are for identifying employers, Corporations, Partnerships, and other entities!