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

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

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.

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

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.

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! :-)

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.

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.