Metal Detecting and save money on Taxes

[Roger Mn.]

Went to my tax man today and he saved me over $100.00 by putting my Metal detectors,coils,battery's and related items up as- Metal Detection-coin search-sale.
Putting into service.
Says it didn't matter when I bought it.
Has anyone else done this?
I would like to here what others know about this.
Roger

 

[SC_hunter]

Wish you could expand on this..are you talking about using it as a business expense??

 

[smurf-42]

I to am more interested in this.

How did he do it and what schedule form did he use?

My CPA loves me, LOL.

We have a rental property, I have 1 gas royalty, next year I will add on a coal royalty, my volunteer mileage and expenses. I get to claim half of my cell phone expense being that it is used for volunteer services. Also, we get to claim what my hubby spends on tools for work.

I can see me possibly adding more stuff for him to do.

Sue

 

[Roger Mn.]

Wish you could expand on this..are you talking about using it as a business expense??

Yes as a business expense.Lets say I want to go to the east coast detecting for some coins I could deduct all ex pence's,gas and other things.Some day I might find that $10,000.00 coin and sell it I would have to pay taxes and have other cost to deduct.He said a detector is a tool used to find coins and other things of value.He said I could deduct treasure magazines,batteries and anything else related to the business.Ask your accountant.It don't matter how old you detector is.Mine is 5 years old and I just put it in service as a tool.
Lets say you bought a snow blower 5 years ago and you just started doing snow removal and charge money.You can now deduct that snow blower on your taxes because you put it in service.
If I wear out my jeans kneeling I can deduct them.Knee pads,gloves you name it.He said I can do this even if I don't find anything of value.
Roger

 

[Roger Mn.]

I to am more interested in this.

How did he do it and what schedule form did he use?

My CPA loves me, LOL.

We have a rental property, I have 1 gas royalty, next year I will add on a coal royalty, my volunteer mileage and expenses. I get to claim half of my cell phone expense being that it is used for volunteer services. Also, we get to claim what my hubby spends on tools for work.

I can see me possibly adding more stuff for him to do.

Sue

Schedule C...Profit or loss from business(sole proprietorship)
Roger

 

[SandFiddler]

You will have to make a profit and pay tax on your profit or the IRS will declare your "business" to be a hobby.
Better talk to a CPA.

 

[Roger Mn.]

I to am more interested in this.

How did he do it and what schedule form did he use?

My CPA loves me, LOL.

We have a rental property, I have 1 gas royalty, next year I will add on a coal royalty, my volunteer mileage and expenses. I get to claim half of my cell phone expense being that it is used for volunteer services. Also, we get to claim what my hubby spends on tools for work.

I can see me possibly adding more stuff for him to do.

Sue

Good luck Sue and keep good records of everything it adds up.

 

[Roger Mn.]

What about the vehicle you use can you depreciate it ? Maybe deduct mileage ? What about additional expenses ? Say you go on a trip to go metal detecting can you deduct motel charges and food ?

If it's related to detecting as a business I think yes.

 

[SC_hunter]

You will have to make a profit and pay tax on your profit or the IRS will declare your "business" to be a hobby.
Better talk to a CPA.

I think the IRS gives you a certain amount of time to show a profit, but I'm not sure how long they give you. I think I might just skip this deduction..

 

[WV Hillbilly]

I think you have 5 years to show a profit if it hasn't changed . Wouldn't deducting metal detecting equipment & related expenses as a buisness expense require you to have some sort of buisness license ?

 

[Roger Mn.]

You will have to make a profit and pay tax on your profit or the IRS will declare your "business" to be a hobby.
Better talk to a CPA.

I think the IRS gives you a certain amount of time to show a profit, but I'm not sure how long they give you. I think I might just skip this deduction..

I still have time to take it off my tax and was hoping to get imformation from someone that has used it before as a deduction.Maybe opening a can of worms by doing it.

 

[smurf-42]

If your tax man says you can do it, then I wouldn't worry and keep it there.

I go to see my CPA in 2 weeks to go over stuff. I will ask him about this when we discuss my winnings from sweepstakes.

Sue

 

[Roger Mn.]

I think you have 5 years to show a profit if it hasn't changed . Wouldn't deducting metal detecting equipment & related expenses as a buisness expense require you to have some sort of buisness license ?

It's seven years and you don't need a buisness license.Once the seven years are up you will not be able to deduct.

 

[pegleglooker]

hey gang,
Does anyone know how much you can claim if you md and what if you started a website last year about mding ??

PLL

 

[Siegfried Schlagrule]

No matter how many years they give you to do it you must
show a profit within the time limit or you will be facing
taxes and penalties on the entire amount you deducted.
If they rule that these are hobby expences due to lack of
profitability you are basically cooked.
The website would be a seperate issue and would have
seperate rules that i'm not familiar with. The specialty of
the website wouldn't matter. It would be treated like all
other websites. You may be able to get website rules
from the IRS website. They also have a help line but the
answers they give are not neccessarily the ones that will
save you money. good luck, siegfried schlagrule