Deducting What Others Do Not

Do you have pets? Would you like to deduct expenses associated with them? Do you have a hobby, SCUBA Diving, Biking, Boating, Etc? Would you like to deduct the expenses associated with your hobby? Maybe you can.

I’m not an attorney or a CPA. This isn’t intended to be legal advice. This post simply explains what my personal practices are regarding certain expenses most people do not deduct.

First – Dogs

I’ve mentioned in previous posts that I raise Miniature Doberman Pinchers. These puppies are sold to buyers across the country. Not only is this a business, it’s a profitable one. Everyone should be able to understand how any expenses associated with these dogs could be deducted from a tax return. The same can be said of your dogs, provided you try to breed them to sell the puppies. You may not successfully breed the dogs, you may not make a profit, you may lose money, but this does not stop you from deducting the expenses if your intention is to make a profit.

Second – SCUBA Diving

SCUBA Diving is an expensive hobby which requires ongoing training to maintain proficiency with certain skills required to be safe. I have several SCUBA tanks and each is emblazoned with my company logo. Each of my bags carries the same logo, including contact information. My wetsuit carries the same logo. These items are deducted as an advertising expense. ---The same could be true with other recreational activities; biking, running, rock climbing, etc. (Okay – I don’t run, but it works with the other activities)

I was audited two years ago and these expenses were brought into question. I explained that it was my position that these were legitimate advertising expenses. The expenses above withstood the audit. The travel expenses were already deducted through my real estate business. I was not penalized and for these deductions. There were others … but that’s another post

Greg Gardner - Director
Asset Investment Trust
www.AssetInvestmentTrust.com
112 S. Main St,
Clover, SC 29710
877-567-2513 (Ext 101)