reef keeping tax writeoff

[phlibbyreefer]

With the year quickly coming to an end I couldn't help but think about taxes, and the expenses with keeping a reef tank.

I was just curious, can we be considered doing good for the environment by growing endangered corals at home and helping the ecosystem and all that jazz? Any type of tax loophole to deduct electricity and other maintenance?

 

[CNDReef]

That would be awesome if there was, following along

 

[cracker]

Interesting I'm following . LOL

 

[phlibbyreefer]

I know I am reaching for the stars but maybe there is an expect here that knows something.

 

[Softhammer]

Good luck with that.

 

[Jason mack]

This question has been asked before ....as far as I know it's not possible ...

 

[Macdaddynick1]

I’m a tax CPA, 12 years experience.

The short answer is no. The only way to get any kind of benefit would be to take the position you are engaged in the trade or business of reef keeping. To qualify as a t or b, you’d have to have evidence you are growing corals for sale / profit and then to take deduction above and beyond the gross income of the activity you’d have to be able to say you dedicated more than 500 hours to the business.

If you are below the 500 hours and you still qualify as a trade or business, the losses from the business would only get to offset other passive income (such as rental income from another passive activity) or get carried forward to a future year to offset future passive income.

The advice above is very high level and you should, as always, consult a tax professional to provide specific advice to your personal situation.

500 hours check. [emoji3581]

Anyone who spends less than 500 hours on their reef tank is not a true reefer as far as I’m concerned.

 

[pdxmonkeyboy]

OMG i am going to do my own taxes this year and right off EVERYTHING.

i will just say a CPA with 12 years experience told me I could.

 

[Tuffyyyyy]

I’m a tax CPA, 12 years experience.

The short answer is no. The only way to get any kind of benefit would be to take the position you are engaged in the trade or business of reef keeping. To qualify as a t or b, you’d have to have evidence you are growing corals for sale / profit and then to take deduction above and beyond the gross income of the activity you’d have to be able to say you dedicated more than 500 hours to the business.

If you are below the 500 hours and you still qualify as a trade or business, the losses from the business would only get to offset other passive income (such as rental income from another passive activity) or get carried forward to a future year to offset future passive income.

The advice above is very high level and you should, as always, consult a tax professional to provide specific advice to your personal situation.

It's been a while since I took REG, but this was the best thing I could think of as well.

 

[JoshH]

I know here in Canada you can get a tax break on reefing or other hobbies if your specific hobby is of a therapeutic nature to yourself. Meaning you went to therapy and all that process then suggested an aquarium would help relieve stress and you and your doctor fill out a mountain of paperwork. Is it worth it, maybe, maybe not, I don't know what the actual percentages are. But here it's atleast possible.

 

[squampton]

I know here in Canada you can get a tax break on reefing or other hobbies if your specific hobby is of a therapeutic nature to yourself. Meaning you went to therapy and all that process then suggested an aquarium would help relieve stress and you and your doctor fill out a mountain of paperwork. Is it worth it, maybe, maybe not, I don't know what the actual percentages are. But here it's atleast possible.

Interesting.

I live in Canada, but eh too poor to benefit from tax deductions,

 

[JoshH]

Interesting.

I live in Canada, but eh too poor to benefit from tax deductions,

The only reason I know about it is my Fiancé is a Special education teacher and one of her students has an aquarium for therapeutic reasons.

 

[Jason mack]

I know here in Canada you can get a tax break on reefing or other hobbies if your specific hobby is of a therapeutic nature to yourself. Meaning you went to therapy and all that process then suggested an aquarium would help relieve stress and you and your doctor fill out a mountain of paperwork. Is it worth it, maybe, maybe not, I don't know what the actual percentages are. But here it's atleast possible.

I'm moving too Canada now..