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RETIRED theater builder
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OK, Turbo Tax season is here again and I'm wondering who among us has figured out a way to deduct some or all of the HT expenses as business expenses.


I'm wondering about about guys like Videocam who does editing of his video work in his theater.


How about the misses who has a meeting of all her Avon ladies in the theater?


Fess up, who has put through a deduction?
 

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Well me and the misses started to do our returns last night and I was pleased to see that I could take a deduction for adding insulation and a dedicated central A/C & Heat Unit
. It's just icing on the cake because I was able to get the unit at cost with next to no labor. No quite what you mentioned but I'll take it...
 

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Last year I bought a 720P projector for the shop and put up a 100" screen for posting outing results and watching the Masters and other events in HD.

This of course isn't for the home but I think if you make it so you use a piece of your equipment at work for some crazy reason you should be able to do it.


Start having business meetings with presentations at your theater, sounds like a deduction to me.


Contemplating talking to the accountant, to see if it's legal, when I decide to upgrade to 1080P projector and have it set up for "The Masters" week at work and then let it migrate to the home front.
 

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RETIRED theater builder
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Discussion Starter #5
Here is a summary of the energry conservation opportunities:


Highlights of the Energy Policy Act of 2005 for Individuals


FS-2006-14, Jan. 2006


During 2006, individuals can make energy-conscious purchases that will provide tax benefits when filling out their tax returns next year. The new law provides tax credits for making your principal residence, which must be in the United States, more energy efficient and for buying certain energy efficient items. At the same time the law provides credits for various types of alternative motor vehicles, including hybrids.


Credits for Individuals Who Make Their Homes More Energy Efficient


A recent tax law change provides a tax credit to improve the energy efficiency of existing homes. The law provides a 10 percent credit for buying qualified energy efficiency improvements. To qualify, a component must meet or exceed the criteria established by the 2000 International Energy Conservation Code (including supplements) and must be installed in the taxpayer’s main home in the United States.


The following items are eligible:


Insulation systems that reduce heat loss/gain

Exterior windows (including skylights)

Exterior doors Metal roofs (meeting applicable Energy Star requirements).


In addition, the law provides a credit for costs relating to residential energy property expenses. To qualify as residential energy property, the property must meet certification requirements prescribed by the Secretary of the Treasury and must be installed in the taxpayer’s main home in the United States.


The following items are eligible:


$50 for each advanced main air circulating fan

$150 for each qualified natural gas, propane, or oil furnace or hot water boiler

$300 for each item of qualified energy efficient property.

The maximum credit for all taxable years is $500 – no more than $200 of the credit can be attributable to expenses for windows.


Additionally, the new law makes a credit available to those who add qualified solar panels, solar water heating equipment, or a fuel cell power plant to their homes in the United States. In general, a qualified fuel cell power plant converts a fuel into electricity using electrochemical means, has an electricity –only generation efficiency of more than 30 percent and generates at least 0.5 kilowatts of electricity. Taxpayers are allowed one credit equal to 30 percent of the qualified investment in a solar panel up to a maximum credit of $2,000, and another equivalent credit for investing in a solar water heating system. No part of either system can be used to heat a pool or hot tub.


Additionally, taxpayers are also allowed a 30 percent tax credit for the purchase of qualified fuel cell power plants. The credit may not exceed $500 for each .5 kilowatt of capacity.


These items must be placed in service after Dec. 31, 2005 and before Jan. 1, 2008
 

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In my case and with my business I talked to my accountant about it and it was a no go for anything. He said he would do what ever I told him to, but he suggested that I would get flagged and then audited and then I would be paying it all back anyways. Since I pay him for his advice it only made sense to listen to him but I was saddened as my business has far more money then I do.(I would have that 3 chip 1080P DLP already if that was the case
)

I'm of course in Canada and a consultant for building SAGD plants so your mileage may vary.

Good luck and for those that can just know that I'm jealous.


Cheers

Calvin
 

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Wife does home based daycare - the space is deducted as the kids watch lots of movies

I remodel houses - I use it to show the possibilities


Reality is that we and only we will go in the HT
 

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I just finished mine and i git a total of $81.00 Credit for the Insulation... oh well better then nothing
 

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Yea, I got $194 credit due to new door, window, and insulation. Unfortunately, the Residential Home Energy Credit is one of the forms that was revised significantly late by Congress and as a result, the IRS won't even look at my return until 2/11, with a refund expected 9-14 days after that.


Oh well, $194 is better than a stick in the eye!


CJ
 

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Yep - $194 isn't bad. I took $18 as a credit for insulation. I only counted the insulation that actually went on the outside wall of the house, so that's pretty easy to justify for an audit.
 

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A little tax trivia...


if you do not file any return = misdemeanor


knowingly filing a false return = felony


-- from a former federal prosecutor ... now keeping you and your company out of jail
 

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Quote:
Originally Posted by GPowers /forum/post/13009900


The guys that are in the Home Theater busness can. Demo, research, testing, learning, installing etc....

GPowers, This is not directed at you but is sparked by your comment.


Okay! I'm about to go off on a rant..................


I'm in the Audio and Home Theater business in Connecticut. Each year, my Home Theater costs me at tax season. Demo gear is taxed as corporate profit.


CT has a State Income Tax and we're a C Corp. So, if my level of inventory (demo gear included) increases from the previous year, I get the shaft from the IRS and from my state.


When I draw a paycheck, they tax me again.


If I decide not to draw a paycheck, that's a foolish thing to do because I'll pay corporate income taxes on the cash sitting in the company. Then, when I finally do draw paycheck, I'm taxed again. DOUBLE TAXATION


You've gotta love getting raked over the coals for working hard seven days each week, never taking vacations and trying to do the right thing. This is not how our nation's founding fathers had envisioned the American Dream. They must be spinning in their graves over our current system of taxation and the new breed of politicians talking about the re-distribution of wealth. Turns out Sen. McCarthy wasn't so crazy after all.


It all boils down to whether we want this country to turn to socialism. I certainly do not and most hard working Americans do not want socialism. Think about it; you're rewarded if you don't work and penalized for working hard and creating jobs for others.


Just wait! If you vote for the wrong candidate (they're all no good so were screwed either way) watch out because some are talking about "raising taxes on the rich". Don't be fooled! In their eyes, anyone who works for a living and is making over $50k a year is considered rich, so they're coming for all your money guys! These bums in Washington want to charge you 80-90% income tax like when Carter was president. They think they can handle YOUR money and spend it better than you can. If you think you can trust the govenment to solve your problems or take care of you when you're down, think again. Look at the great job they did with social security. How are we supposed to pay SS benefits to all the boomers due to retire in the next three years and beyond? They want to tax you AGAIN!


Wait and See! The Anti-American environmental (Green) tax, which will be payable to the UN is coming. Don't vote for anyone who wants to give up American sovereignty, not to the Anti-American UN and not to any North American or World Alliance. We are still the world's greatest superpower! Why should we give that up and let some crooked piss ant from South Africa control our military or call the shots for us. Be careful and don't trust the politicians; any of them!


Sorry about the rant, but someday you're going to look back and say that whacko from Audio Dynamics was right!
 

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Why set up as a C-corp then? Especially if you're a small company with few employees, wouldn't an LLC or S-corp be a better choice?
 

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Quote:
Originally Posted by BucksWin /forum/post/13188927


Why set up as a C-corp then? Especially if you're a small company with few employees, wouldn't an LLC or S-corp be a better choice?

There's good reason to be a C Corp. We also own a high volume mortgage company and a nationwide commercial equipment leasing and finance company.


My job is to help people get what they want most; A dream audio/video system. Through our mortgage company, we provide the financing for these home theater and media room projects which are financed as part of the home's construction.


For those clients who own their own businesses, many will lease their A/V system through their business. The payments are 100% tax deductible. At the end of the lease, the equipment can be purchased for a small fee or returned for a new A/V system on a new lease. Equipment purchased through their business never falls under their wife's discretion. I allow my clients to exercise their testicular rights and be men again!



My business model is unique. I know of no other Custom Install firm that can offer what I offer (high end equipment and the money to buy it). Now you know my Niche market and my ultimate business secret. We totally eliminate the client's last reservations and take away the weasel clause (excuse to say no) which is usually, "I'm not sure if I have the money".


Filing as an LLC or S corp will not change the fact that increases in inventory are taxed as annual profit.
 

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I got the tax credit for insulation, heat pump and garage door.


However the big one was the morgage intrest tax deduction for the HELOC that has financed everything. I think that was about 3K
 

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I’m a wedding photographer. I use my theater with prospective brides.

= )
 

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Quote:
Originally Posted by SpaceMoose /forum/post/13193210


Hmmm - why can't you claim depreciation on the demo stock (since although it's in 'inventory' it can't be sold as new)

Already doing that but you can't depreciate 100% in the first year.


Our fiscal year ends December 31st. I've learned the hard way not to stock up too much in the fall. Come December, it's smarter to move product at much lower margins, than to sit on it in inventory and pay higher income tax. I'm about to get nailed this April though.


I never keep any demo gear longer than 6-9 months. After that usage period or after a new model is already on the market, it's really hard to sell demo gear. You guys are very discriminating buyers. I still have $15k projectors in stock with only 80 hours on the chassis, that no one would buy because the next model was intoduced. That's one of the rare exceptions I can think of, where we have been able to write off gear through depreciation.


When your honest, you get screwed tax wise. If your dishonest you go to jail. Since my only option is to "take it" either way, I'd rather bend over and take it from the IRS! In that case, there's nothing I can do about it anyway so I'm really sorry about my ranting and raving guys! We'll not really! But I do appreciate having an open thread to get that off my chest!
 

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Yeah that sucks man. I've often wondered why demo gear was considered to be inventory (since it's unlikely to be sold at non-depreciated rates) and wasn't considered an advertising expense.
 
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