State is MN
ok guys I do woodworking as a hobby but it gets quite expensive (I am still trying to hide the charge for a $500 router table from my wife that I just HAD to have). I am starting to make some pretty high end pieces. I do not want to turn this into an actual business yet because for me that ruins the fun if I am on deadlines and have to work on what other people want from me. What I am wondering is: is there a way to make a piece and donate it to some charity and write off more then my actual cost on it? For example if I make a humidor (my next big project) and it would normally retail for about $2500 but I may only have $300-400 in actual materials in it. How much would it be legal for me to write off? I am in a sales job so most of my pay is taxed as a bonus so if I even wrote off $1000 I would make back my costs on it, but I don't want to do something that is illegal or would get me audited.
Any ideas on how I can make this work?
ok guys I do woodworking as a hobby but it gets quite expensive (I am still trying to hide the charge for a $500 router table from my wife that I just HAD to have). I am starting to make some pretty high end pieces. I do not want to turn this into an actual business yet because for me that ruins the fun if I am on deadlines and have to work on what other people want from me. What I am wondering is: is there a way to make a piece and donate it to some charity and write off more then my actual cost on it? For example if I make a humidor (my next big project) and it would normally retail for about $2500 but I may only have $300-400 in actual materials in it. How much would it be legal for me to write off? I am in a sales job so most of my pay is taxed as a bonus so if I even wrote off $1000 I would make back my costs on it, but I don't want to do something that is illegal or would get me audited.
Any ideas on how I can make this work?