Business Write Off's

[CenterMass90068]

I'm curious... since becoming a certified instructor I began to wonder if I can now write off most of my firearm related purchases. Anyone know the answer to this? I figured since this is a small business and I use my own firearms and ammo most of the time when training beginner courses am I able to write off firearm/ammo purchases/targets etc???

[10rounds]

You can do whatever you want until the IRS determines that it's a hobby & not a business. A business needs to make a profit. It could be a red flag for the IRS if the business have losses for several years. Talk to a tax accountant.

Firearm costs will need to be depreciated over several years since they will probably be considered to be assets. Depending on the quantity, ammo & targets might need to be inventoried until consumed (for example 50,000 rounds purchased).

Good luck.

[poller]

I am not a tax accountant, but do run small businesses.

Years ago, the IRS started to frown upon people claiming business deductions for what turned out to be hobbies - typically stamp collecting, or the like. Typically during an audit, the IRS would be focused on the profitability of the activity. If it wasn't making a profit - or attempting to - it was deemed a hobby, and all deductions disallowed.

The solution is to operate a business as a business. You can organize your business as a sole-proprietorship, an LLC (limited liability company) or a corporation. There are advantages and disadvantages to each.

When you operate as a business, and keep your business financial activities separate from your personal financial activities, then you can deduct legitimate business expenses. You do *not* have to make a profit. You do have to *attempt* to make a profit.

If you were truly operating a fireams instructions business than you theoretically could depreciate your firearms (I'd assume a 20year period), eyes and ears, and consumables (targets, ammo, cleaning supplies, range fees, your training costs, etc).

If you're serious about this, find a tax accountant.