Re: Coil for rent?

to: Gary

Good idea but the IRS will nail you if you continually report a $1.00
profit.  You have to have "intent to make profit" and you can not report
only marginal profits for for than 7 years or you will get hit with a hard
audit and be required to pay all back taxes.  Oh, and by the way, they will
want it all within 30 days or else.


<<<< Tax law is not the subject of this list.  Future posts regarding taxes
will probably get rejected. - Terry (who is the son of an IRS special agent
:-)) >>>>

> From: Tesla List <tesla-at-pupman-dot-com>
> To: tesla-at-pupman-dot-com
> Subject: Re: Coil for rent?
> Date: Tuesday, September 29, 1998 9:24 PM
> Original Poster: gweaver <gweaver-at-earthlink-dot-net> 
> I am working on a moble Tesla Coil to rent out at parties.  Got the idea
> few weeks ago.  I am looking for a 20 KW generator.  I plan to put my
> TC that makes 126" long spark on a trailer and pulling it to events like
> parties or what ever.  I figure the total cost of this thing including
> generator, trailer, truck to pull it with, etc. will be several 1000
> dollors.  Haven't decided on a fair rental price yet but I think
> in the neighbor hood of $500.00 for 2 hours of sparks would be a fair
> Have to consider maintenance costs, and other stuff.  I also figure after
> running the coil ON 60 seconds and OFF 30 seconds for 2 hours, or
> like that, I will learn ways to improve the coil so it will hold up to
> punishment.  I haven't considered long distance travel, was thinking
> local travel only.  Would have to get travel expences for long distance
> travel.  Naturally I don't expect to rent this out every night of the
> either. 1 or 2 rentals a month would be more than enough for me.  Any
> than that and I would have to hire someone to do it for me and that would
> another expence. The best part of this idea is my TC hobby will be tax
> deductable.  I could get a friend to pay me $1.00 to watch me run my coil
> for a few minutes and by law I am required to report that $1.00 on my
> federal income tax return.  If I made a profit of $1.00 then my TC is an
> income and I can call it a business.  By law all business expences are
> deductable.  If I spend $1000.00 on a coil and make a profit of only
> its tax deductable. Thats the LAW. Thats a cool idea.  Everyone on the TC
> list could have a friend pay them $1.00 to watch them run there coil then
> report it as income and deduct all the TC expences on the next tax return
> and get a almost free coil in the process. Not much different than a
> car which is a money loosing business.  Stock car owners are required my
> to report all income from sponcers and race winnings and all expences are
> deductable.  Did you ever wonder how people that race stock cars on a
> track could afford that expence?  Its tax deductable.
> Gary Weaver
> At 04:55 PM 9/28/98 -0600, you wrote:
> >Original Poster: "Delano J Lopez" <DELANOL-at-prodigy-dot-net> 
> >
> >
> >Hello.  My name is Delano Lopez and I work for a company called Gala
> >Events.  We put on parties and events and such. I am putting together a
> >proposal for a "Mad Scientist's Laboratory" Halloween party.  Is there
> >one on the list who owns a Tesla coil and lives in the greater
> >DC area and would be willing to rent out their coil?  If so, please send
> >what you would charge for the rental. also include what you would be
> >for your time either to attend the party or to show us how to work the
> >coil.  alternately, can anyone provide me with a rough estimate as to
> >much the raw materials for building a tesla coil would cost? Finally,
> >anyone sell premade coils?  Many thanks.
> >
> >"Delano J Lopez" <DELANOL-at-prodigy-dot-net
> >
> >
> >