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Guest post by: Steven J. Weil, PhD, EA Become an Author

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From Our Q&A "Can I deduct my Gun"

Hello Steve...always read the newsletter.

I have a question:   Given the current economic situation and a concomitant rise in burglaries/ crime/ office break-ins...

...if I were to purchase a Wilson Combat .45 caliber piece of Dental equipment for my office  ($3000), would said piece of equipment be deductible, and to what extent?

I'm former military, concealed carry licensed, etc.

Thank You for your consideration of this matter,

Dr ________________________________

 

ANSWER

 You would need to be able to make the argument that that the fire arm was "Ordinary and necessary".

A deductible business expense must be both ordinary and necessary in relation to the taxpayer's industry. Is it common or necessary or dentists to need fire arms to protect their offices?

An expense is ordinary if it's customary or usual in the taxpayer's business.  But an unusual expense may be ordinary if it's reasonably related to the taxpayer's trade or business.  (don't think this works for you)  A necessary expense is one that's appropriate and helpful in developing and maintaining the taxpayer's business. It need not be essential or indispensable. (are you going to take the fire arm out of the office that would lead to this being seen as a personal item by the IRS and not Necessary to the business.

I would therefore advice against the deduction of a fire arm. But if you did meet the Ordinary and Necessary test you would then have to depreciate the fire arm as it has a useful life of more than one year.

I will say however that this is your choice not that of your tax preparer or accountant as, Usually the taxpayer's judgment as to what's necessary will be accepted by the IRS and if on audit it is determined that it is not a Ordinary and Necessary expense the auditor would disallow it, but this would not be fraud or criminal as you truly believed that it was necessary it would simply result in additional taxes and maybe some penalties and interest.

One other consideration is would business ownership affect your insurance and insurance costs. Many insurance companies exclude fire arms liability from their business insurance and you should also check to be sure that none of your coverage would be voided.

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