HolidayBuyer's Guide

Small business & Startups forum


Deductible items...

by spikedzombies / February 25, 2014 1:01 PM PST

I run a side business of accessories and tactical gear..

If i buy some items my distributor sells to create a custom rifle for display purposes can I write off those expenses?

Say I have a stock rifle, and spend $400 in my own money to customize it and use it for displays at gunshows/in store and at the range... can i deduct my cost?

Discussion is locked
You are posting a reply to: Deductible items...
The posting of advertisements, profanity, or personal attacks is prohibited. Please refer to our CNET Forums policies for details. All submitted content is subject to our Terms of Use.
Track this discussion and email me when there are updates

If you're asking for technical help, please be sure to include all your system info, including operating system, model number, and any other specifics related to the problem. Also please exercise your best judgment when posting in the forums--revealing personal information such as your e-mail address, telephone number, and address is not recommended.

You are reporting the following post: Deductible items...
This post has been flagged and will be reviewed by our staff. Thank you for helping us maintain CNET's great community.
Sorry, there was a problem flagging this post. Please try again now or at a later time.
If you believe this post is offensive or violates the CNET Forums' Usage policies, you can report it below (this will not automatically remove the post). Once reported, our moderators will be notified and the post will be reviewed.

All Answers

Collapse -
Depends on your country's rules.
by R. Proffitt Forum moderator / February 25, 2014 1:15 PM PST
In reply to: Deductible items...

This is called depreciation. It rarely happens in 1 year (USA rules). You need to ask your tax and accounting person this question.

Collapse -
by spikedzombies / February 26, 2014 10:05 AM PST

well im in the USA, Seattle to be exact

I think they are considered DEMO/Promotion/Advertisements.. i may be wrong tho.. but i was reading some stuff on turbotax forums and it seems thats what they are written off as..

Collapse -
Then once you write them off.
by R. Proffitt Forum moderator / February 26, 2014 10:14 AM PST
In reply to: reply

You don't sell them as that would count as income at full pop. To me this sounds like a deprecation item and not something you write off in one year.

Collapse -
by Accounting2013 / March 17, 2014 12:33 PM PDT
In reply to: Deductible items...


For $400, it is not worth depreciation as you will get $80 per year according to IRS standards.

However, depreciation is considered "long-term". Let's suppose a rifle is only worth $200 and you put in $2,300 to repair and refinish the item AND its only purpose is to be a show piece of your skills and expertise. Then, you depreciate the item as you spent more than 50% of the worth and it becomes a new item. Plus, since you intend on showing it over time, it needs to be depreciated.

On another example, if you have a rifle that is only worth $200 and you spend $200 on a new stock. The item is still a show piece item and you spent more than 50% of the cost to repair & refinish the item. Then (technically) you still need to depreciate it. However, nobody is gong to split hair if you decide to expense it since your depreciation is only $80 per year.

In short, it's up to the accountant's professional judgment on a lot of these particular items. I hope this helps!

Best Regards,
Tran Nguyen

PS It would fall into the depreciation of "Props and Settings"

Popular Forums
Computer Newbies 10,686 discussions
Computer Help 54,365 discussions
Laptops 21,181 discussions
Networking & Wireless 16,313 discussions
Phones 17,137 discussions
Security 31,287 discussions
TVs & Home Theaters 22,101 discussions
Windows 7 8,164 discussions
Windows 10 2,657 discussions


Cameras that make great holiday gifts

Let them start the new year with a step up in photo and video quality from a phone.