Firearm related write-off's

[CenterMass90068]

Since becoming a NRA certified instructor I was wondering, can I now write off my firearm related purchases? Since this is now a small business for me and I use my own firearms, ammo, targets etc when instructing beginners.....

[Oceanbob]

Good way to trigger an audit in my opinion.

[rejoinder]

of course you can, if you file a return naming that as your occupation. No need to be paranoid about an audit, but take a percentage, to reflect the fact that you use some things for personal use. Back that up by keeping a journal, record the # of targets used, rounds, range fee's even mileage driving to the range for that purpose, keep records of each expense and the amount of material used for each lesson, perfectly legitimate.

[71MUSTY]

Also bear in mind there needs to be a business purpose. IE: Being a NRA Certified Instructor isn't enough. Being a NRA Certified Instructor teaching gun safety classes on a fee base would work.

[AAShooter]

-just have to be careful to distinguish between a hobby and a business.

http://www.irs.gov/uac/Business-or-Hobby%3F-Answer-Has-Implications-for-Deductions

[Christopher761]

Sounds like a good time to talk to a CPA.

But generally, if you have a for profit business, then you can write off reasonable business expenses.

Be careful about writing off mileage, as you can only writeoff miles from the office to a job site. You generally cannot writeoff miles from home to the office, or from home to a jobsite. And keep written records. A small mileage book in the car is one easy way.

Writing off guns would be an interesting issue to talk to the CPA about. Since they are tools, you may be able to do so, but will probably have to depreciate over a period of years.

Writing off consumables (toner cartridges, paper, bullets, etc) may be appropriate, but it depends on your situation.

If you get audited, they will be concerned about differentiating between personal use and business use. If it like a cell phone that you use for both, you will not get any write-off. If it is like a car where you can apportion business and personal use, then you might.

Again, talk to a CPA.

[meaty-btz]

A non-profit organization does not make a profit and is a tax write off. We should make Gun non-profits and use them to run all of our range meets.

[Ronin2]

Your write offs can not exceed the income you make as an instructor.

[-hanko]

Sounds like a good time to talk to a CPA.

But generally, if you have a for profit business, then you can write off reasonable business expenses.

Be careful about writing off mileage, as you can only writeoff miles from the office to a job site. You generally cannot writeoff miles from home to the office, or from home to a jobsite. And keep written records. A small mileage book in the car is one easy way.

Writing off guns would be an interesting issue to talk to the CPA about. Since they are tools, you may be able to do so, but will probably have to depreciate over a period of years.

Writing off consumables (toner cartridges, paper, bullets, etc) may be appropriate, but it depends on your situation.

If you get audited, they will be concerned about differentiating between personal use and business use. If it like a cell phone that you use for both, you will not get any write-off. If it is like a car where you can apportion business and personal use, then you might.

Again, talk to a CPA.

^/This, in spades.

I don't ask my CPA about firearms training. Though, OT, she does carry daily.

This is NOT the place to ask for tax advise...retain a professional CPA.

[Decoligny]

I believe that since you are required to maintain your shooting skills, a certain amount can also be claimed for practice rounds and targets.

I wouldn't go claiming 10,000 rounds a month for practice, but if you schedule specific business related target practice times, and log them, I think it would fly.

IANACPA - check with a tax professional as I am spewing WAGs from memory.

[AAShooter]

A non-profit organization does not make a profit and is a tax write off. We should make Gun non-profits and use them to run all of our range meets.

Many ranges are set up as non-profit organizations.

[CenterMass90068]

Thanks guys, I'm a general contractor and I'm already in the habit of keeping pretty tight records of my expenses/mileage etc. Any deductions I take would be strictly for class expenses (ammo/targets), continuing any advanced training I receive for advancing my instructor credentials, liability insurance etc. If I deduct for actual firearm purchases I would do it on a percentage base. I file my own taxes every year so I would also consider depreciation.... Thanks again

[diveRN]

Your write offs can not exceed the income you make as an instructor.

How do you figure? Are there new rules related to these kinds of write offs?

When I started teaching divers as an independent instructor in 1999, I had huge expenses in my first year. All of my gear, student-use gear, training aids, mileage to the ocean, cell phone, marketing tools, web site, etc... all were significantly greater than my income. My income from a my diving business showed a net loss.

Because I was also employed at the time and my expenses were so high that first year, I actually received a refund on taxes paid on my employment income.

Back then, my taxes were done by an Enrolled Agent-CPA.

[AAShooter]

How do you figure? Are there new rules related to these kinds of write offs?

When I started teaching divers as an independent instructor in 1999, I had huge expenses in my first year. All of my gear, student-use gear, training aids, mileage to the ocean, cell phone, marketing tools, web site, etc... all were significantly greater than my income. My income from a my diving business showed a net loss.

Because I was also employed at the time and my expenses were so high that first year, I actually received a refund on taxes paid on my employment income.

Back then, my taxes were done by an Enrolled Agent-CPA.

It depends on whether you are running a business or it is hobby income. Depends on how you structure your business.

[fiddletown]

A non-profit organization does not make a profit and is a tax write off. ...

Not exactly.

1. The organization must be properly set up as a non-profit, e. g., a non-profit mutual benefit corporation or a non-profit public benefit corporation. There are number of other forms of organization which could be used.
   
   
2. But however it is organized, a non-profit has to make a profit, i. e., it must take in more money than it spends. If it doesn't take in more money than it spends, it won't be in existence long.
   
   
   1. The difference is that a non-profit doesn't have shareholders to whom the profits inure.
      
      
   2. And a non-profit also has to pay taxes, unless it has qualified for one of the 29 categories of tax exemption available under Section 501(c) of the Internal Revenue Code.
      
      
   3. Even with a tax exemption, a non-profit could have some tax liability. For example, a corporation exempt from federal income tax under 501(c)(4) must still pay taxes on income unrelated to its tax exempt purposes.
      
      
   4. And tax exempt non-profits must still file annual returns with the IRS.