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

If you where able to claim one of the new digital cameras  of 40 to 70 thousand 
dollars you only get back the tax of that idem, 10 to 20 thousand. You would be 
better off taking tax deduction on a least camera. That is my two cents, have a 
great day

-----Original Message-----
From: "Gary Todoroff" <datamaster@xxxxxxxxxxxxxxxxxxxx>
To: hasselblad@xxxxxxxxxxxxx
Sent: 10/15/08 7:55 PM
Subject: [HUG ] Re: SV: Re: On the subject of equipement  cost

You are in business in the US if you engage in financial activity 
with the intent to make a profit. The same rules apply whether you 
are a multi-million dollar company or an individual who loses money 
most of the time. The IRS "guidelines" stipulate that you should show 
a profit for some years, but I don't know what is the exact number of 
years. Tax LAW, last I heard, did not specify that you had to always 
make a profit, although numerous years of losses could trigger an IRS 
audit. In any case, the tax laws were made for the big guys, but the 
little guys get to play by the same rules. There is absolutely 
nothing shady about taking whatever deductions you are entitled to by 
the rules, as long as you are not fraudulent in your declaration of 
income and expense. That is the difference between tax AVOIDANCE and 
tax EVASION.

What I really hate is the smug attitude of someone who has always 
collected a paycheck who says to the businessman, "Can't you just 
write it off?" That is money out of your pocket, no matter what the 
expense. A write-off is money spent, plain and simple. If you can 
justify it as a business expense, however, some or all of it can be 
deducted from the profit of your business on which taxes are paid. An 
expense as large as the stratospheric cost of a Hassleblad these days 
would probably need to be put on a deduction schedule, in which you 
can only show a portion of the overall expense over a few years. In 
these digital days, you may not be able to actually deduct all the 
equipment expense from your profit until long after the equipment is obsolete.

In any case, I'm neither a lawyer nor an accountant. All the money I 
give those gusy to keep up with the insane rules, however, is a 
business tax "write-off", and an absurd waste of money that I would 
much rather keep in my pocket!! If you are not filing an IRS Schedule 
C these days showing profit and loss for some kind of business, then 
just kiss your paycheck money goodbye as it takes wings toward the 
bottomless pit called Washington, D.C.

Gary Todoroff



>>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


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