Is my XL2 is tax deductible if used for work? at DVinfo.net

Charles Scalesse · June 22nd, 2006, 10:35 AM

I work as a real estate broker in new york as well as a filmmaker and actor. I recently purchased an XL2 that I will ultimately be using for both professions. That makes the camera and equipment tax deductible, correct?

I want to stay on Uncle Sam's good side... but I also want to be able to deduct it next year if it is, indeed, a valid deduction.

Thanks!

Charles

Mark Bournes · June 22nd, 2006, 10:40 AM

If you bought it through your business it's definitely a write off. I wrote mine off last year and I was not incorporated. I was working as an independent contractor and had no problems writing off my camera and other equipment. No red flags were raised. As long as you're using it for your business you will have no issuses with the IRS. Just keep all of your receipts and billing records for when you used the equipment. (Audit reasons) You'll be fine. Enjoy the camera.

Mark

Steve McDonald · June 23rd, 2006, 05:41 AM

If you purchased this camcorder in your own name, you might simplify things by selling it to your business after the first of next year. I wouldn't charge more than you actually paid for it and the IRS might require you to depreciate it for the usage before this transaction. I'm assuming your brokerage is incorporated.

John Miller · June 23rd, 2006, 08:48 AM

Yes. If you use it for personal use, too, you'll have to apportion usage accordingly.

Don Donatello · June 26th, 2006, 11:01 PM

i agree with all here - you can write it off ..BUT i'm not so sure about writing it off in one year unless you use it for one project and then sell it or trade it in ?? ... a camera is item you will use on many projects and it has a life of X years .. i've always written off my hardware/software that cost over $250 over 5 years... and don't forget you have to have income in order to write it.

Boyd Ostroff · June 27th, 2006, 08:48 AM

Welcome to DVinfo Charles! I moved your post to our "Taking Care of Business" forum which is where we usually discuss this sort of thing. I think the only real way to answer your question is to talk to your accountant. There are a lot of details to consider when it comes to taxes, and that's why I hire someone who I trust to take care of them! :-)

Peter Moore · July 21st, 2006, 03:11 PM

You can only write it off the profits of your business though. You cannot write it off your own personal income even if it's a business expense, unless you count it as a hobby, in which case you can only write it off to the extent that the hobby generated you profits.

Jim Michael · July 23rd, 2006, 06:28 AM

Although you can only deduct up to the amount of profit in the current tax year you can carry losses over to subsequent years. You also have the option of taking your deduction in one year for certain equipment purchases or depreciating it over several years. Listen to Boyd, consult with a tax professional. You will save money in the long run and you won't be worrying whether you did things correctly.

June 22nd, 2006, 10:35 AM	#1
Charles Scalesse New Boot Join Date: Jun 2006 Location: New York, NY Posts: 15	Is my XL2 is tax deductible if used for work? I work as a real estate broker in new york as well as a filmmaker and actor. I recently purchased an XL2 that I will ultimately be using for both professions. That makes the camera and equipment tax deductible, correct? I want to stay on Uncle Sam's good side... but I also want to be able to deduct it next year if it is, indeed, a valid deduction. Thanks! Charles

June 23rd, 2006, 05:41 AM	#3
Steve McDonald Major Player Join Date: Aug 2002 Location: Eugene, Oregon Posts: 366	If you purchased this camcorder in your own name, you might simplify things by selling it to your business after the first of next year. I wouldn't charge more than you actually paid for it and the IRS might require you to depreciate it for the usage before this transaction. I'm assuming your brokerage is incorporated. __________________ Steve McDonald

June 22nd, 2006, 10:40 AM	#2
Mark Bournes Major Player Join Date: Nov 2005 Location: Jupiter, FL Posts: 565	If you bought it through your business it's definitely a write off. I wrote mine off last year and I was not incorporated. I was working as an independent contractor and had no problems writing off my camera and other equipment. No red flags were raised. As long as you're using it for your business you will have no issuses with the IRS. Just keep all of your receipts and billing records for when you used the equipment. (Audit reasons) You'll be fine. Enjoy the camera. Mark

June 23rd, 2006, 08:48 AM	#4
John Miller Major Player Join Date: Oct 2005 Location: Hillsborough, NC, USA Posts: 968	Yes. If you use it for personal use, too, you'll have to apportion usage accordingly.

June 26th, 2006, 11:01 PM	#5
Don Donatello Hawaiian Shirt Mogul Join Date: Nov 2001 Location: northern cailfornia Posts: 1,261	i agree with all here - you can write it off ..BUT i'm not so sure about writing it off in one year unless you use it for one project and then sell it or trade it in ?? ... a camera is item you will use on many projects and it has a life of X years .. i've always written off my hardware/software that cost over $250 over 5 years... and don't forget you have to have income in order to write it.

June 27th, 2006, 08:48 AM	#6
Boyd Ostroff Wrangler Join Date: Dec 2002 Location: Mays Landing, NJ Posts: 11,802	Welcome to DVinfo Charles! I moved your post to our "Taking Care of Business" forum which is where we usually discuss this sort of thing. I think the only real way to answer your question is to talk to your accountant. There are a lot of details to consider when it comes to taxes, and that's why I hire someone who I trust to take care of them! :-)

July 21st, 2006, 03:11 PM	#7
Peter Moore Trustee Join Date: Oct 2002 Location: Arlington VA Posts: 1,034	You can only write it off the profits of your business though. You cannot write it off your own personal income even if it's a business expense, unless you count it as a hobby, in which case you can only write it off to the extent that the hobby generated you profits.

July 23rd, 2006, 06:28 AM	#8
Jim Michael Major Player Join Date: Dec 2005 Posts: 895	Although you can only deduct up to the amount of profit in the current tax year you can carry losses over to subsequent years. You also have the option of taking your deduction in one year for certain equipment purchases or depreciating it over several years. Listen to Boyd, consult with a tax professional. You will save money in the long run and you won't be worrying whether you did things correctly.