Give this a read.
This is a discussion on Tax exemption for CC expenses? within the Concealed Carry Issues & Discussions forums, part of the Defensive Carry Discussions category; Does anyone know who can claim tax exemption for CC expenses? I'm self employed contractor who does sales in neighborhoods that are down right scary. ...
Does anyone know who can claim tax exemption for CC expenses? I'm self employed contractor who does sales in neighborhoods that are down right scary. I CC for personal protection, wouldn't be in those areas if I wasn't packing. I see it as a necessary business expense but will the IRS? It would be real sweet if I could deduct training, weapon, ammo etc.
There are 10 types of people in the world:
Those who understand binary, and those that don't.
Thanks, after reading that my head exploded-keep good records w/ receipts and go on a spending spree at the gun store, got it!
Did you read this part:
The decision to be entered is not reviewable by any other court, and this opinion should not be cited as authority.
Never spend money just for the tax deduction (Dave says, a Dave Ramsey quote). However, I believe it could be used a business expense if you had it for that reason. Talk to a real good tax adviser. I thought the same thing because of my rental unit. I decided to use a property manager because I was having marketing problems. I also can't have a negative on the rental against my "real" income so it was a moot point.
Seems like it would be like any other "tool". I was told the SWAT members write-off their EOSTech scopes. Just needs to be valid usage. There is some weird rules about personal use of business assets, something like it can't detract from its original serviceability. If it does and it can be used up you have to use % business use and % personal use.
The tax court looks like it just felt sorry for the dude. I mean, the opinion says the judge believed his story, that he was credible and all, but only allowed for firing range, ammunition costs, firearm and camera (all directly related to his job as an LEO) a total of $300 out of the $1,024 he claimed to have actually spent.
My personal conclusion: if you claim your CCW related expenses as an exemption, this will "trigger" an audit and IRS will "shoot" your claim down.
Before I retired, I could claim all reasonable costs over and above my uniform allowance. Now that I have my own Private Investigation agency, I claim it all on the advise of my attorney.
Treat me good, I'll treat you better. Treat me bad, I'll treat you worse.
If you tried to deduct this as a business expense, that means that you could only use the CCW for business purposes. That means on the weekends when you are not working, you wouldn't be able to use your CCW because it is for personal reasons. Remember, anything you deduct for business reasons, is to be used for business purposes ONLY. If IRS finds you were also using it for personal reasons, they will come after ya.
I don't think it would be worth it for the little bit of tax money you would save (maybe $10-30). Better just to keep is out of your taxes so you can utilize it everyday.
I'm not tax expert but pretty compentent and familiar with the O/O issues.
If you buy a gun and holster, for example, and ONLY carry the gun while on the clock, it should be deductable*.
If you carry 24/7 but work 40 hours a week, you can deduct the portion of cost that is on par with 40/168 (40 hours worked, 168 hours in a week).
I'm not positive of the best category to deduct it. Gun & holster are clearly not consumables, and since they are durable goods they would likely fall into capitol equipment with a 5- or 7- year depreciation.
Ammo is consumable, and will fall into one of the consumable/daily expense/petty cash buckets.
A CCW Permit would be deductable (potentially 100% the first year as a "licensing expense", just like an occupancy permit or business license).
Not an accountant, but I aced my last audit.