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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 12167
Experience:  Licensed CPA, CFE, CMA who teaches accounting courses at Master's Level
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Hello, I am a commercial fisherman and work out of a few

Resolved Question:

Hello,

I am a commercial fisherman and work out of a few ports but in the summer I always work out of one town...Anacortes, WA. I operate my own boat and have always rented an apartment/room during my 4 months of work there.

This year I bought a condo in Anacortes. Can I write off the expenses of the purchase of the condo and buying/supplying.....furniture, kitchen supplies, etc. as a business expense on my schedule C?

I will only use it for the few months that I am working there and don't plan on renting it out unless I can gain some tax benefit.

Thanks for any help I can get with this. I am trying to reduce my tax liability somehow.

Steve
Submitted: 9 months ago.
Category: Tax
Expert:  Megan C replied 9 months ago.

Megan C :

Hello! I am a CPA here to assist you with your tax questions. My goal is to provide you with excellent service today.

Megan C :

How are you today?

Megan C :

I hate to be the bearer of bad news, but you cannot write off the cost of the purchase of the condo. The purchase of the condo, plus your living supplies, are considered a personal expense.

Megan C :

However, you can write off the interest and property taxes on schedule A along with your primary residence.

Megan C :

If you use a portion of the house solely for business purposes (you have an office where you do paperwork, etc) then you can write off a portion of your home as a home office.

Megan C :

However, to do this, you have to use that portion of the house ONLY for business purposes.

Megan C :

And it has to be your ' principal place of business'

Megan C :

You can read more about the home office deduction, HERE

Customer: Can I make this condo a rental and claim it as a rental property? I would rent it from myself for 4 months and then put it on the rental market for the 8 months I am not there.
Megan C :

You can't use the house for personal purposes for the greater of 14 days or 10% of the days you rent it out

Megan C :

If you do, your expenses will be limited. Your deductions would be subject to the gross rental income limitation - meaning you could only deduct expenses up to the gross rents that you collect. You would not be creating any loss to offset your other income in that case

Megan C :

You can read more about that, HERE

Megan C :

So your tax benefit would be limited

Customer: Thanks Megan. Appreciate the info and the help. Guess that I will just have to pay more taxes than I had hoped to. At least I can use my money to pay taxes instead of buying the really unaffordable health care... :-(
Megan C :

I know, it's horrible isn't it?

Megan C :

It's going to get worse before it gets better, I'm afraid.

Customer: Mine health care will go up $400 A MONTH for similar coverage. Yikes!!! And I was an Obama voter. The new health care just isn't going to work very well for me. I work/live in serial different states so I will probably pay the penalty as it will be much cheaper for me. Or just chang insurance companies every few months as I move from place to place.
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 12167
Experience: Licensed CPA, CFE, CMA who teaches accounting courses at Master's Level
Megan C and 3 other Tax Specialists are ready to help you
Expert:  Megan C replied 9 months ago.
Thanks, Steve for your positive rating. Please come back and visit me any time you have a question that needs answered. It was a pleasure working with you today.

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