TAX Exemption?

[fallingchip 0]

As you can tell by the amount of jumps I have I do not have a rig....
However, I have a little side business, nothing big or anything, I started for extra money.
Question...If I were to order a main canopy and have my business name on it for everyone to see on approach...could I write off the rig as a "advertisement expense"?

Any tax experts that can comment?

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"A radical man is a man with both feet firmly planted in the air."
-Franklin Delano Roosevelt

[GravityGirl 0]

Since the canopy would cost about twice as much, it wouldn't be cost effective.

What type of business do you have? If it's lawn mowing, I don't think you'll have a legitimate expense.

~~~~~~~~~~~~~~~~~
Peace and Blue Skies!
Bonnie ==>Gravity Gear!

[fallingchip 0]

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...What type of business do you have? If it's lawn mowing, I don't think you'll have a legitimate expense...

catering...Its called GOOD EATS. I thought if I could get GOOD EATS on the canopy and have a couple of pics taken coming in on approach it would be justified if i was to be audited...

Twice as much huh...oh well I though it was a good idea

______________________________________________
"A radical man is a man with both feet firmly planted in the air."
-Franklin Delano Roosevelt

[GravityGirl 0]

There are limits to advertising dollars you can write off.

The logo on the canopy would only be helpfull if you are jumping into a public place as a form of advertising.

However, you may be better off with any old canopy, some stills of you/it, and use the photos to make brocheurs and flyers. But that is a stretch.

But you'll have to check www.irs.gov to find out what your limitations are.

Lettering on canopies is quite expensive. You will have to buy a new main and the custom print will set you back as much as the canopy itself.

Of course if you really insiston pursuing this, I can get you some qutoes.

~~~~~~~~~~~~~~~~~
Peace and Blue Skies!
Bonnie ==>Gravity Gear!

[fallingchip 0]

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...Of course if you really insiston pursuing this, I can get you some qutoes.

Thanks...but I think ya'll convinced me I'm an idiot...

______________________________________________
"A radical man is a man with both feet firmly planted in the air."
-Franklin Delano Roosevelt

[GravityGirl 0]

No. Not an idiot at all. Keep the thought process flowing. For every 1000 crazy ideas I have, one of them usually sticks!

~~~~~~~~~~~~~~~~~
Peace and Blue Skies!
Bonnie ==>Gravity Gear!

[fallingchip 0]

______________________________________________
"A radical man is a man with both feet firmly planted in the air."
-Franklin Delano Roosevelt

[skydiver30960 0]

I have a buddy (who shall remain nameless to avoid the claws of the IRS auditors reading these forums, the conspiracy theories are true, I tell you!) who embroiders his company's name on the side of his rigs, then writes off the WHOLE rig. As far as I know, he hasn't been called on it... yet.

Elvisio "undecided about the fair tax movement" Rodriguez

[BIGUN 1,307]

You might get off a little cheaper and get some third-party testimonials to grow your business by putting out some eats at the DZ on a table with your company name and get some pictures of the feed. All travel/expenses to and from would be deductible. Skydivers remember them what feeds them and will help down the road. You could use it as a photo op to add to your gallery of satisfied customers. Perhaps even an opportunity for pics and textual references to add to the website.

My $.02 is to not use the business for skydiving tax deductions, but to grow your business so you can afford to skydive.

Nobody has time to listen; because they're desperately chasing the need of being heard.

[pleifer 0]

Quote

catering...

I thought about catering for extra money, but decided it was a bad idea when my business plan included foods such as ramman noodles, and macaroni and cheese....

Sounded good in my head, bad on paper

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The Angel of Duh has spoke

[JohnMitchell 16]

You need to run the numbers on whether or not the deduction will do you any good. Last time I tried to deduct a new rig as a business expense ( I'm an instructor) I had too much gross to get anything from the deduction. At least that's what Turbo Tax did for me.

[fallingchip 0]

Quote

You might get off a little cheaper and get some third-party testimonials to grow your business by putting out some eats at the DZ on a table with your company name and get some pictures of the feed. All travel/expenses to and from would be deductible. Skydivers remember them what feeds them and will help down the road. You could use it as a photo op to add to your gallery of satisfied customers. Perhaps even an opportunity for pics and textual references to add to the website.

My $.02 is to not use the business for skydiving tax deductions, but to grow your business so you can afford to skydive.

already thought about a "break even" feed just for the pics and future feeds. Thanks for your two pennies.

______________________________________________
"A radical man is a man with both feet firmly planted in the air."
-Franklin Delano Roosevelt

[DrewEckhardt 0]

Quote

You need to run the numbers on whether or not the deduction will do you any good. Last time I tried to deduct a new rig as a business expense ( I'm an instructor) I had too much gross to get anything from the deduction. At least that's what Turbo Tax did for me.

You need to get a better accountant or to read more about the game rules.

Ideally you don't buy the rig: your LLC or S-corp does.

Its net income is reduced the year the rig was put into service under section 179 or over a period of years as the rig depreciates. Section 179 is only applicable when the business use is over 50%. The deductions are adjusted based on the percentage of business use. If your percentage of business use drops after you've taken the section 179 deduction you have to pay the back taxes.

The next choice is reporting your skydiving income on schedule C and depreciating or taking the section 179 deduction.

Either way it's not part of your miscellaneous deductions that must exceed 2% of your AGI and doesn't phase out with the rest of your itemized deductions.