Claim NFA tax on Federal tax return???

[SquatchWorks]

I got a $200 NFA stamp last year for my Suppressor... can I deduct the $200 from my taxable income?

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[tallshipsgo]

I know it's a serious question (and I'm sure someone can, with a straight face, answer it) but thank you! I'm cracking up just thinking about writing off NFA taxes! Will the IRS be tempted to audit you, or just call it even and move along?

 

[ZachS]

If the suppressor is for business use, probably. Otherwise, no.

http://www.irs.gov/publications/p17/ch22.html



A questionable $200 deduction, absent anything else that makes the computers suspicious, is unlikely to trigger an audit. The IRS uses modern methods to use its agents' time efficiently - unless it wants to "reach out" to a specific group of taxpayers, which it might do if it received thousands of returns clearly claiming deductions for NFA taxes.

 

[SquatchWorks]

If it was used for business, I would be claiming the whole suppressor and pistol and stamp!!!

Thanks- I guess I wont be claiming it!! I thought I would ask before I freakout my tax guy with dumb questions!!!

 

[wired]

The $200 is an excise tax and cannot be claimed as an exemption.

 

[Mountainman]

The $200 is a tax. You have to file the long form and write it off on the Schedule A form.

 

[wired]

The $200 is a tax. You have to file the long form and write it off on the Schedule A form.

Not true.The $200 NFA tax is specifically listed under the IRS guidelines as a non tax deductible excise tax because of its status as a service fee. If you are buying NFA for business reasons the $200 tax is deductible. For personal reasons it is not. You are buying a $200 stamp from the ATF . You cannot claim that $200 stamp any more than you can claim the stamp on the neck of a whiskey bottle or for that matter the postage stamp on an envelope as a deduction even on a long form.

From http://www.irs.gov/taxtopics/tc503.html

"Taxes and fees you cannot deduct on Schedule A include Federal income taxes, social security taxes, stamp taxes, or transfer taxes on the sale of property, homeowner's association fees, estate and inheritance taxes and service charges for water, sewer, or trash collection. You may be subject to a limit on some of your itemized deductions including nonbusiness taxes. Please refer to the Form 1040 Instructions for the limitations based on the adjusted gross income."

 

[tionico]

so, they gits yer munny, then they gits yer munny

dang revenooers

ain't they fat enuff yit?

 

[cyclesarge]

Thanks for the answers. I was wondering about this myself, after paying $200 last year and $400 this year.

 

[Mountainman]

Not true.The $200 NFA tax is specifically listed under the IRS guidelines as a non tax deductible excise tax because of its status as a service fee. If you are buying NFA for business reasons the $200 tax is deductible. For personal reasons it is not. You are buying a $200 stamp from the ATF . You cannot claim that $200 stamp any more than you can claim the stamp on the neck of a whiskey bottle or for that matter the postage stamp on an envelope as a deduction even on a long form.

From http://www.irs.gov/taxtopics/tc503.html

"Taxes and fees you cannot deduct on Schedule A include Federal income taxes, social security taxes, stamp taxes, or transfer taxes on the sale of property, homeowner's association fees, estate and inheritance taxes and service charges for water, sewer, or trash collection. You may be subject to a limit on some of your itemized deductions including nonbusiness taxes. Please refer to the Form 1040 Instructions for the limitations based on the adjusted gross income."

I think you are interpreting the tax code wrong and the stamp and transfer taxes they say are not deductible refer to real estate transactions. The $200 NFA transfer tax is on personal property. It is the individuals call on if they want to write it off or not. I write it off and if the IRS does not like it they can let me know and then I will pay the difference in what I owe them.

http://www.irs.gov/publications/p17/ch22.html#en_US_publink1000173196

A little past 3/4 down the page under "Real Estate-Related Items You Cannot Deduct".

"Transfer taxes (or stamp taxes). Transfer taxes and similar taxes and charges on the sale of a personal home are not deductible. If they are paid by the seller, they are expenses of the sale and reduce the amount realized on the sale. If paid by the buyer, they are included in the cost basis of the property."

 

[wired]

I think you are interpreting the tax code wrong and the stamp and transfer taxes they say are not deductible refer to real estate transactions. The $200 NFA transfer tax is on personal property. It is the individuals call on if they want to write it off or not. I write it off and if the IRS does not like it they can let me know and then I will pay the difference in what I owe them.

http://www.irs.gov/publications/p17/ch22.html#en_US_publink1000173196

A little past 3/4 down the page under "Real Estate-Related Items You Cannot Deduct".

"Transfer taxes (or stamp taxes). Transfer taxes and similar taxes and charges on the sale of a personal home are not deductible. If they are paid by the seller, they are expenses of the sale and reduce the amount realized on the sale. If paid by the buyer, they are included in the cost basis of the property."

Theyre not deductible. Ive been told this by ATF agents and IRS examiners during audits. No different than the tax stamp on a bottle of booze.

 

[Mountainman]

Like I said "It is the individuals call on if they want to write it off or not." Read the IRS forms and make your own decision. It's not like if your wrong they are going to throw you in jail, you just pay the unpaid tax you owe. I have and will continue in the future to write off NFA transfer taxes. If one person from each agency you mentioned told you something, just call someone else from each agency and I'll bet you get a different answer. The .gov people don't even know/understand the laws they are suppose to enforce.

 

[ZachS]

Like I said "It is the individuals call on if they want to write it off or not." Read the IRS forms and make your own decision. It's not like if your wrong they are going to throw you in jail, you just pay the unpaid tax you owe. I have and will continue in the future to write off NFA transfer taxes. If one person from each agency you mentioned told you something, just call someone else from each agency and I'll bet you get a different answer. The .gov people don't even know/understand the laws they are suppose to enforce.

All true, but it's still not a legal deduction.

 

[wired]

You can deduct anything until you get caught doing it.