Is this possible?

[looseyfur]

goto the bank open a checking account called "tarantula farm" with your name and address on the checks. Use this checking account to purchase ANYTHING having to do with T's and the hobby. Save all your recipts and your UPS recipts as well... then write the whole farking thing off?
tarantula farm is your business with its own funds and recipts and you are the president. Even if you got taxed on some of the capital they assumed you should make wouldnt the write offs offset that?
viola instant free hobby?

just wondering?

looseyfur

 

[MrFeexit]

Good in theory, you would have to show a profit at some point because you can't always operate in the red. Oh I am sure it could be done if you kept changing the name of the business and such.

 

[Kreepy]

I don't know if this helps, as I live in a different country than you do, but I can only "write off" expenses against the actual income my business generates, thereby reducing the amount of my taxable income, and thus the amount of tax I have to pay. But I still have to pay for those expenses. So if I made $30,000 but I had $25,000 in expenses, I would be taxed a percentage of that remaining $5,000 (since I'm Canadian, that percentage would be 250% ). So if you sold some T's and kept good records, you certainly would never have to pay income tax on your "business" profit, but it won't actually save you any money vis a vis purchasing supplies for your own hobby.

maybe another member knows your local laws, tho, and can let you know if you can loan your own money to your new business and then write off the loan against your own personal income tax, thereby saving some change that way.

funny thing is, when I brought home this T, I thought, "geez, two cricks a week? can there be a cheaper pet? but now all i think about is how to get more!

cheers,
kreep

 

[arachnopunks]

It isn't that simple. If you open a "business" of tarantula "farming" the bank account would have to opened as a DBA (Doing Business As) account. This in turn creates more red tape. The bank will need to keep records of you as a Registered business in case they get auditted. This means Federal, State and Local Licensing and registration ($). The expenses you incur for the business can only be written off of the business not your personal income. Then there are taxes, Sales tax, Use tax, and Income tax plus whatever you have on the local level. You may not know about Use tax-this is tax you have to pay on the products (or int this case T's) you use or keep and do not sell. So you pay for it one way or another. The US Gov (mafia) always gets theirs. You could try to fly under the radar of Uncle Sam but Big Brother will eventually catch up. You will save yourself a load of hassle by being legit. Don't let this dicourage you if it is something you want to do just research the way to do it in your state, county and city.

 

[LPacker79]

We used to breed horses, and would write off anything to do with them (training fees, show fees, breeding fees, barn payments, tractors, etc.). The thing is, you MUST show a profit (I believe it's 2 years out of 5). Failure to show a profit will earn you an audit and you'll most likely have to pay it all back.