[HUG ] Re: SV: Re: On the subject of equipement cost

In the USA, You must be trying to run a business.... with verifiable
"things" that you do to maintain a business....  Then and only then can you
deduct your costs.... and yes, from your other income if it is a loss.

Buying a $75K Hasselblad or Leica S2 system, taking it off the taxes and
then doing absolutely nothing to actually run a business  ( real
advertising, some jobs, maybe a few customer meetings) will get your
deduction dumped if you get audited.

The trick it to run the business at a zero, or, better yet, $1 profit a
year.... and then run it forever......  Then you can buy a $75 Blad system
and they can not complain...... as long as you can show you used the
equipment in earning the revenue.......

I think our Tax guys are more intolerant.........than the Canadians......


Frank Filippone
red735i@xxxxxxxxxxxxx

I wouldn't call it tax paradise but Revenue Canada calls them part time 
businesses (not hobbies) and any expenses that are incured business 
activities are tax deductible.  Losses are tax deductible from other income.

In Canada a person must declare income (and losses) from all sources on 
his/her personal tax form.

Franc




=============================================================================================================
To unsubscribe from this list, go to www.freelists.org and logon to your 
account (the same e-mail address and password you set-up when you subscribed,) 
and unsubscribe from there.

Other related posts: