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

The absolutely big disquialifier... is showing you are trying to run a
business.

If it looks like a hobby, acts like a hobby, and earns like a hobby, it IS a
hobby.  And that, without some revenue, gets your deduction a big no-go.
It is up to the taxpayer to defend his business as such.  

My point on the profit of $1 a year is that at that level, you are obeying
all the rules of a business ( part time or full time, no difference).  You
can write off your purchases, as expenses, in their entirety, against income
of that business.  A $75K camera outfit, with an expectant lifetime use of 2
years ( probably not an unrealistic timeframe of a digital anything), can
probably be expensed.

However, as even an expense, you are offsetting income.  Which is taxed at
your marginal tax rate...... which is like 20-40% or so of the income
amount.  Writing off against this income is like the government offsetting
your purchase by the same %.  Or , a 20-40% discount of what you bought.  

There is no FREE lunch.  Just offsets.......

Frank Filippone
red735i@xxxxxxxxxxxxx


You are in business in the US if you engage in financial activity 
with the intent to make a profit. 




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