5 ms·

But that's much, much easier said than done. What if your hobby is ceramics or 3d printing or painting or craft cocktails or homebrewing or repairing old cars o

But that's much, much easier said than done. What if your hobby is ceramics or 3d printing or painting or craft cocktails or homebrewing or repairing old cars or gardening...

ghaff 5y ago
Well, yes, you have to make enough money off your hobby that you have revenue to offset costs against. Which may be possible with art of various kinds but, then, you may not care enough about the money to bother going through the effort of selling at craft fairs or whatever.
throw737858 5y ago
3d printer is 10k. Out of pocket it would be $10k plus income tax $5k plus $1k VAT. So you form "3d printing shop" company and put some money in (loan, services...). Company purchases 3d printer, but does not pay any taxes on printer, it is an expense. After a few years 3d printer is out of warranty but still functional, can be purchased from company for $1. Difference $5999. Obviously this is not advice, consult your accountant first. In reality it is bit more complex. But this is rough picture.
- rkk3 5y ago
  > So you form "3d printing shop" company and put some money in (loan, services...). Company purchases 3d printer, but does not pay any taxes on printer, it is an expense. But you already paid the 5k in Income Tax, when you initially earned the 10k that you put in the company to buy the printer. How does that save 5k? I think the business needs revenue.
  - mjh2539 5y ago
    Your net income is lower when you claim the 5k loss for the business.
    - ghaff 5y ago
      It depends on the structure of the business, etc. You're probably going to spend as much on accountants as the few hundred dollars you might save, assuming you don't get audited.
    - burntoutfire 5y ago
      It only works if the 3d printing really brings in some revenue. Otherwise, buying a 3d printer in a business that is doing something else (say, software consulting) cannot be counted as a cost.

But that's much, much easier said than done. What if your hobby is ceramics or 3d printing or painting or craft cocktails or homebrewing or repairing old cars or gardening...

ghaff 5y ago

Well, yes, you have to make enough money off your hobby that you have revenue to offset costs against. Which may be possible with art of various kinds but, then, you may not care enough about the money to bother going through the effort of selling at craft fairs or whatever.

throw737858 5y ago

3d printer is 10k. Out of pocket it would be $10k plus income tax $5k plus $1k VAT. So you form "3d printing shop" company and put some money in (loan, services...). Company purchases 3d printer, but does not pay any taxes on printer, it is an expense. After a few years 3d printer is out of warranty but still functional, can be purchased from company for $1. Difference $5999. Obviously this is not advice, consult your accountant first. In reality it is bit more complex. But this is rough picture.

rkk3 5y ago
> So you form "3d printing shop" company and put some money in (loan, services...). Company purchases 3d printer, but does not pay any taxes on printer, it is an expense. But you already paid the 5k in Income Tax, when you initially earned the 10k that you put in the company to buy the printer. How does that save 5k? I think the business needs revenue.
- mjh2539 5y ago
  Your net income is lower when you claim the 5k loss for the business.
  - ghaff 5y ago
    It depends on the structure of the business, etc. You're probably going to spend as much on accountants as the few hundred dollars you might save, assuming you don't get audited.
  - burntoutfire 5y ago
    It only works if the 3d printing really brings in some revenue. Otherwise, buying a 3d printer in a business that is doing something else (say, software consulting) cannot be counted as a cost.