Can I claim a firearm on my taxes?

B-Dubbz · January 30, 2009, 06:58 PM

I own a small business and was wondering if anyone knows if I can claim the handgun I bought for security reasons. Thanks for any help.

BillCA · January 30, 2009, 07:57 PM

You probably can if you can meet a list of criteria.
I'm only guessing but that criteria would probably involve:
- Buying the gun with "company" funds.
- Keeping the gun on company property most of the time.
- Using the gun exclusively for protecting the company assets.
- Keeping it listed on the company's list of assets.

There may be more requirements such as registering it with the company as owner.

B-Dubbz · January 30, 2009, 08:00 PM

Thanks for the response. I will check into this list and see if I meet all of the criteria.

Hkmp5sd · January 30, 2009, 09:22 PM

Don't forget it is also a business asset and you get to pay taxes on it.

You get to claim the purchase once on your taxes and pay annual taxes for owning it forever.

Brian Pfleuger · January 30, 2009, 09:25 PM

I wondered the same thing. I assume the rule would be about the same as a leased car. Basically, what Bill said.

MPD223 · January 30, 2009, 09:56 PM

I was able to write off two guns, and my liberty safe. Now when ever I want a gun I just tell the wife,"dont worry honey, well get it all back at the end of the year".She still doesnt by that arguement though.

melchloboo · January 30, 2009, 10:23 PM

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.

I would not worry so much about the IRS, you are talking about a chump change deduction. I would worry more about trying to have a firearm owned by a non-natural person. Many legal questions here, you could easily get zapped.

nemoaz · January 30, 2009, 10:36 PM

You also probably won't be able to deduct the full amount. Usually, durable property must be depreciated over time (say 5 years). So get tax help from someone who knows what they are talking about.

vranasaurus · January 30, 2009, 10:37 PM

Felons are not prohibtied from owning firearms they are prohibited from possessing them. So forming a company, that would own the firearms, would not relieve a felon from the prohibtion against possession.

You can own something and not possess it.

nemoaz · January 30, 2009, 10:38 PM

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.

Meh... many corporations own firearms. Colt Inc? Blackwater? All those PI and security companies.

It doesn't change the fact that no felon could be in actual or constructive possession of the guns. Ie, if you are the owner and have the keys to the gun safe/arms room.... you are breaking the law I suspect.

alloy · January 31, 2009, 06:22 AM

is it a legit business expense?
if so...write it off.

BillCA · February 1, 2009, 03:24 PM

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.

January 30, 2009, 06:58 PM	#1
B-Dubbz Junior Member Join Date: January 25, 2009 Posts: 10	Can I claim a firearm on my taxes? I own a small business and was wondering if anyone knows if I can claim the handgun I bought for security reasons. Thanks for any help.

January 30, 2009, 07:57 PM	#2
BillCA Senior Member Join Date: November 28, 2004 Location: Silicon Valley, Ca Posts: 7,117	You probably can if you can meet a list of criteria. I'm only guessing but that criteria would probably involve: - Buying the gun with "company" funds. - Keeping the gun on company property most of the time. - Using the gun exclusively for protecting the company assets. - Keeping it listed on the company's list of assets. There may be more requirements such as registering it with the company as owner. __________________ BillCA in CA (Unfortunately)

January 30, 2009, 09:25 PM	#5
Brian Pfleuger Moderator Emeritus Join Date: June 25, 2008 Location: Austin, CO Posts: 19,578	I wondered the same thing. I assume the rule would be about the same as a leased car. Basically, what Bill said. __________________ Nobody plans to screw up their lives... ...they just don't plan not to. -Andy Stanley

January 30, 2009, 08:00 PM	#3
B-Dubbz Junior Member Join Date: January 25, 2009 Posts: 10	Thanks for the response. I will check into this list and see if I meet all of the criteria.

January 30, 2009, 09:22 PM	#4
Hkmp5sd Senior Member Join Date: December 15, 2001 Location: Winter Haven, Florida Posts: 4,303	Don't forget it is also a business asset and you get to pay taxes on it. You get to claim the purchase once on your taxes and pay annual taxes for owning it forever.

January 30, 2009, 09:56 PM	#6
MPD223 Member Join Date: October 13, 2005 Location: Modesto,Ca Posts: 78	I was able to write off two guns, and my liberty safe. Now when ever I want a gun I just tell the wife,"dont worry honey, well get it all back at the end of the year".She still doesnt by that arguement though.

January 30, 2009, 10:23 PM	#7
melchloboo Senior Member Join Date: October 2, 2008 Posts: 279	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. I would not worry so much about the IRS, you are talking about a chump change deduction. I would worry more about trying to have a firearm owned by a non-natural person. Many legal questions here, you could easily get zapped.

January 30, 2009, 10:36 PM	#8
nemoaz Junior member Join Date: May 4, 2007 Location: Meechigan Posts: 492	You also probably won't be able to deduct the full amount. Usually, durable property must be depreciated over time (say 5 years). So get tax help from someone who knows what they are talking about.

January 30, 2009, 10:37 PM	#9
vranasaurus Senior Member Join Date: November 16, 2008 Posts: 1,184	Felons are not prohibtied from owning firearms they are prohibited from possessing them. So forming a company, that would own the firearms, would not relieve a felon from the prohibtion against possession. You can own something and not possess it.