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Old February 1, 2009, 03:24 PM   #12
BillCA
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Join Date: November 28, 2004
Location: Silicon Valley, Ca
Posts: 7,117
Quote:
I would be careful. For one, I am not sure that a state corporation (or other business entity) can own a firearm. Otherwise, a convicted felon could simply form a corporation, then make a purchase just like you have. The company may need a federal license to own.

There are many IRS opinions out regarding mixing hobbies and business. I would ask a CPA or an attorney.
Corporations may own firearms legitimately. Consider all the security companies, armored car companies and others which issue firearms to employees.

I've never bought a firearm for a business, so I have no idea how the 4473 form is done for a business purchase.

Let's suppose John owns a liquor store & check cashing business and he buys a gun to protect himself from robberies both at his business and when going to the bank. He buys the gun as a "company asset" with company funds. So far so good. But he has to get a CCW to carry it. Any ammo he uses to practice with it and the cost of the CCW could be paid for by the business. If he makes monthly trips to the range to stay proficient, he could write that off.

Unless... he buys the gun as a company asset but he sometimes takes it on vacations with him or he carries it during his non-working hours. Likewise, he buys a snubby .38 "for the business" but keeps it at home and carries his personal 1911 for "security" reasons. That won't fly with the IRS.

For those of you with a business who want to acquire a firearm "for the business" should talk to both your corporate counsel as well as a tax-specialist. There are some legal liabilities as well as tax code requirements that may "bite" your posterior.
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