Question: IRS rules for "business use"

[Joe Frickin' Friday]

Can someone point me to an IRS document that describes what is required in order for an expense to be deducted as "business related?"

 

The case in question:

I would like to make videos of the Mojolever in action and host them on my website. My current camera will not record videos of sufficient length, hence I need a new camera (and probably some video editing software). The ideal candidate is a late-model Canon Elph, which can record videos of adequate length, and would also be useful for still shots in future instruction manuals.

 

Obviously such a camera would likely end up being used more often for personal purposes than business purposes, but the primary justification for the purchase is a business purpose. I know the IRS is very strict about home office deductions, and publishes easy-to-find tests that determine whether one can take such a deduction, but I can't find the specific rules that would determine whether my proposed camera purchase would qualify as a legitimate/deductible business expense.

 

Help?

[BFish]

Mitch....check out Pub 535 at IRS

 

it's a bit generic, but may help. i'd be happy to discuss this with if you'd like. call my office (321) 259-9191. verbal discussion of the practical side of your issue is preferable.

[Whip]

I don't think you'll have a problem writing it off. If the day came for an audit, it would be sitting right there next to the Mojo, waiting to take video of the next new and improved model.

 

 

 

 

[tallman]

Do you need to be a "business" to have business expenses?

If so, then the type of business you are would dictate how expenses are viewed.

20 years of owning my own business and not taking all the deductions I could makes me an expert.

Call Brian, but don't offer him anything for free, unless he rides up to pick it up.

[BFish]

not looking for anything at all and i'd love to ride up just to discuss it! would rather discuss than post a response.

[Quinn]

If you rode up, it would be a business expense. And a lot cooler than Florida.

 

 

[tallman]

My point exactly.

At least the business part, not so sure after looking at temps on the way.

Michigan should be cooler, but points in between, some are hot and wet.

Guess Mitch will have to charter a jet.

[Joe Frickin' Friday]

Do you need to be a "business" to have business expenses?

 

My understanding is that the nature of the enterprise, its year-to-year profitability, and how one conducts it determines whether the IRS regards it as a hobby or a genuine, for-profit business venture. If it's a hobby, then you can deduct expenses only to the extent that they offset income generated by the hobby activities; OTOH, if it's a business, than you can deduct expenses even if they exceed the gross revenue.

 

Having examined those rules I'm confident that the Mojo would be regarded as a real business venture, but that's kind of beside the point for my current question.

 

Brian, thanks for your offer; I may give you a call some time this week.