is there any possible way i can deduct a gym that would be kept at my house? any way at all?
no
Mark,
What if a doctor gave you a prescription for a home gym? I agree that this is an unlikely event, but wouldn’t this make the home gym a medical expense deduction on Schedule A?
from Drew Miles article I just read, entitled “Let uncle sam pay for your family and fascinations” (here:
http://www.reiclub.com/articles/uncle-sam-pay-family-fasinations )
where the author says
"Your Corporate Gym
Your corporation can pay for the cost of gym equipment. It could be a bow flex marching, the “gazelle” running machine, a treadmill, or free weights, etc. If you’ve already purchased them, reimburse yourself. Here’s an added bonus: If you set up your corporate gym near your corporate home office (say in the basement or garage, the additional space can also be deducted. That could be an additional 300-500 sq. ft. or more of office space."
Is he just guessing or something? that quote seemed way wrong to me, just wanted to ask a little bit. That’s an article right on this site, that seems to read that if you set up a corporation you can just deduct your home gym.
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to take it as a itemized medical deduction, it would have to exceed 7.5% of AGI. Most folks wouldn’t meet this threshold anyway. Dues to a gym or spa are not deductible, even as part of an obesity weight loss program prescribed by a physician, so I would doubt that a home gym would be considered any different.
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On the coroprate side: On-premises facility. The athletic facility must be located on premises you own or lease. It does not have to be located on your business premises. However, the exclusion (from being added to employee income - mw) does not apply to an athletic facility for residential use, such as athletic facilities that are part of a resort. So, a “home” gym would probably not qualify.
You may be able to “sneak” it thru. But “sneaking” is hardly a valid tax strategy. If they question it, it will likely be disallowed.
if you are wasting brainpower on sketchy (bogus, IMHO) deductions, you are not focused on your core business and headed down the wrong path
he actually mentions affiliation with this woman who is involved with the kiyosaki books, so i didn’t take his stuff seriously anyways. it seems outrageous that he is allowed to post articles like that though, which are almost certainly read by an audience that is composed of mostly newbies, and state stuff like it’s totally fact and normal, when it would likely lead to consequences. it’s scary because i wonder how much stuff like that is in my head that is also wrong, that i read from an article here and just assumed that it’s on the up and up.
what would happen if you did do that, would you get fined or would you be charged with fraud and get real penalties?
thanks for the concern, but i think i’m on the right path right now. i’m starting investing in january/february '07 (once i get to the part of the country i’m moving to). until then i’m working at my job… and studying real estate. i’ve been studying for about a year now. getting low on stuff to study, so i’m reading every article on this site (well, maybe ~90%, some authors literally just sound like they’ve never even invested or done this stuff in the real world). tax deductions ARE important. your statement would be right if, for some creepy reason, you happened to know that i wasn’t focused on my core business as well. rest assured that i am, but have pretty much laid my core business plan down, and am now just accumulating some of hte ‘finer’ points, one area being tax deductions.
denied deduction. pay the tax due. no jail time
sorry to keep hammering this, but i’m still a little unclear. are you saying that you can put in questionable stuff, and if you’re not audited, you get away with it? and if they do catch you, there’s no fines or problems, you just have to pay it?
still bothers me that, on a site clearly catering to completely new investors, someone would go ahead and give extremely questionable information like that, in such a matter of fact manner…
Many people get creative with taxes. If the IRS decides to audit you and you can not give a solid reason and proof for a deduction they will make you pay it plus a penalty.
it’s called fraud and people do it all the time. most get away with it, some have to pay penalties, and a few go to jail.
I will not sign a return as preparer that I know to be fraudulent.
the issue is the corrosion of your integrity. I have seen many example through my professional career of people who are cutting corners in business are doing so in their personal lives.
Integrity is probably the most valuable things you have in business (IMHO). A former co-worker of mine (sales guy) did some shady things back in the early 90’s and sold some customers some real junk (and then denied/lied about it). When the tech down turn came, he was let go and has not work since then. He is pretty much an “untouchable” in my industry and probably 30% of the time when his name comes up in conversation, people say “remember when XXX sold…”.
Sure REI is a huge pond, but it amazing how people from the past always pop up. I bought a couple of apartment building from my former landlord from 14 yrs. ago (totally by chance, have not seen the guy in 10+ yrs.)
Heres an old but true saying…
“Everyone is a thief, but its only those that are caught are labled thiefs”
Speak for yourself yrush.
jd- It’s not worth it to save every receipt you ever got just to save a few bucks on taxes. That’s like cutting out coupons to save 2 cents on an apple. Don’t sweat the small stuff. Pay your taxes and don’t nickle and dime the IRS.
never ate a grape at the supermarket…come on…we all pick fruit at one point in our life. Ever keep the wrong change or correct the clerk on the price of something…Doubt it!!!
what do you consider small stuff, a home gym? not saying that i’m going to try to claim that, but if that cost $1000, isn’t that 1000 less money that you’d have to pay taxes on, which is a good amount of money no?
You do not save $1000 in taxes, what your doing is lowering your net income which is what you pay taxes on. Gross income is what you earned before expenses. Net income is what you earn after expenses. You pay taxes based on net income.
Thanks for your definition of net and gross income.
How many thousands or millions of pages long is the federal tax code? I don’t think anyone really knows, I hear different numbers all the time. Besides that, it constantly changes. Therefore you will never catch every deduction. I’d rather pay a little extra in taxes than sift through tax code for months figuring out if I can write off a home gym. Your CPA will charge you more for making them sort out your drawer full of receipts than you’d get in deductions.
And no I haven’t stole a dirty grape from a supermarket. Or let the clerk give me too much change back when I count it.
didn’t say i saved 1000 in taxes, i said that’s 1000 less that i’ll be taxed on, which it is
so you don’t think it’s worth it to log mileage, or to deduct marketing expenses? i hate nitpicking but these thigns seem like they’d add up to somethign substantial, at least in my eyes (remember that if you’re making a lot and they don’t seem like a lot to you, they may be to others). just keeping track of what was spent on gas adn advertising would be many many thousands, if that’s many thousands that you don’t pay 35% of, that seems totally worthwhile
i’m not saying i’d want to comb those books either, but for things that you already know will work it seems smart to save those receipts. maybe it’s the inexperience talking, but i don’t see how you could chuck them if they’re worth money