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gdandscompserv
02-17-2005, 03:04 PM
If I am operating a dojo as a business, and continue to train at another dojo, are the fee's I pay to the other dojo tax deductible as business expenses?

mj
02-17-2005, 03:07 PM
If I am operating a dojo as a business, and continue to train at another dojo, are the fee's I pay to the other dojo tax deductible as business expenses?
Only if you get receipts.

Lyle Laizure
02-26-2005, 06:21 PM
Anything that advances your training should be tax deductable. This would include seminars, training camps, private lessons etc. If you travel to a seminar (out of town) then those expenses including mileage should be deductable as well. Receipts would be good and depending on where you live you may not need them but it is always better to have them than not. I would suggest hiring an accountant to handle this for you. The cost of the accountant should be decutable as well.

tacgroup1
02-26-2005, 07:55 PM
That's a very good question! I too run a professional dojo and I am able to write off anything and everything associated with the dojo; my training (called "professional development" from a tax standpoint), seminars, meals, travel, etc.

Of course, it's important to remember that you must have income in order to have a write-off, many people overlook that simple fact. But as long as you have income as a result of the dojo activity then you can write off associated expenses.

Disclaimer: check with your accountant though! ;)

Bronson
02-28-2005, 10:23 AM
A Uechi ryu karate instructor I know volunteers his time at a local YMCA. His accountant writes off two uniforms a year, any supplies for the class (photocopies, gear, etc.), and mileage to and from the YMCA.

Hmmm, the dojo I teach at recently got its federal non-profit status. I wonder if I can deduct all those things from my taxes too?

Bronson

makuchg
05-03-2005, 04:30 AM
Of course, it's important to remember that you must have income in order to have a write-off, many people overlook that simple fact. But as long as you have income as a result of the dojo activity then you can write off associated expenses.

Be careful, the IRS only requires business to show profit 3 out of 5 years to be considered a "for-profit" business. As a result, even years a business loses money, as long as it meets the 3 out of 5 rule, business expenses can be deducted.

Here's some additional information: http://www.bankrate.com/brm/news/biz/tax/20011022a.asp
http://www.biztaxadvisor.com/small-business-deductions.html

Finally, here is the IRS's page: http://www.irs.gov/publications/p970/ch12.html (notice if the education is to maintain or improve work related skills it is deductable).

The IRS Pub that covers small business is 535 and can be found (for 2004) at http://www.irs.gov/pub/irs-pdf/p535.pdf

But as almost everyone points out, check your accountant or even better call the IRS (remember to get the name of the person)