Can A Handgun Be Considered A Business Expense?

Investor · West Monroe, LA · Member since 2015 · 196 posts · 70 votes

I am considering purchasing a small handgun for protection when going to look at properties in unfamiliar areas. Is this something I can write off at tax time as a business expense?

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Logan AllecBusiness Member

Accountant · Los Angeles, CA · Member since 2014 · 1k+ posts · 980 votes

I'd say no, a handgun would not be ordinary and necessary to your real estate business (assuming you have a real estate business). The discussion on page 6 of is interesting. I'm not saying this case is in any way applicable to your situation, but I am rather just providing it as information so you can see what a Tax Court judge thought about an argument similar to yours.

Excerpt (emphasis mine)

3. Claimed Depreciation of Guns and Deduction of Ammunition Expense

Petitioner, who was interested in collecting guns, purchased two pistols in 1972 for $194 and deducted the amount as a business expense. In 1973 he bought eight guns for $1,491. Four of these were on display in his apartment. He claimed that the other four were used for personal protection at his office and in his car, and therefore deducted their cost as a business expense. An unsolved murder had occurred in the Marina City complex in 1972. Petitioner sometimes goes to what he believes are unsafe job sites to settle insurance claims. Petitioner filed an application to become a deputy sheriff in Cook County in 1973 and he began a training program sometime during that year. He spent about $34 for ammunition in 1973.

In his notice of deficiency respondent disallowed all of the claimed deductions for the guns and ammunition.

There is no way this Court will sanction the deductibility of a private handgun collection under these circumstances. A handgun simply does not qualify as an ordinary and necessary business expense for an insurance agent, even a bold and brave Wyatt Earp type with a fast draw who is willing to risk injury or death in the service of his clients. We regard such expenses as extraordinary rather than "ordinary" to the usual and customary business of an insurance agent. Nor are they "necessary," i.e., appropriate and helpful, for the development or protection of his business. Indeed, petitioner's arguments for deductibility strike us as erroneous and just plain nonsense. Consequently, we hold that the amounts spent for the guns and ammunition are personal expenses which are nondeductible under section 262.

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Michael PlaksPro Member
Tax Accountant / Enrolled Agent · Houston, TX · Member since 2014 · 5k+ posts · 6k+ votes
8y
I'm not sure that the case cited by @Logan Allec means a "no" to the original question.
First, the guy was an insurance agent visiting cites occasionally, not an investor visiting cites daily. But most importantly, he was a gun COLLECTOR. His collection was displayed in his office making it crystal clear. In any deductible expense, we need to establish business purpose, and here the purpose was obviously his personal hobby of collecting, not protection.
Also, he apparently considered a law enforcement career - another strike.
And then we have the classic pigs-hogs situation. Trying to deduct TEN guns? C'mon, dude. Even if he tried to deduct ten laptops or ten circular saws - that would be questionable for one guy.
To me, one handgun for personal protection of an investor seems to fit "ordinary and necessary" criteria, as well as cost of training and ammo.
PS. Of course, I'm a Texan, and Logan is from California. :)
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Joe SplitrockPro Member
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Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
8y
You can write off whatever you want to, but you need to be able to defend it to the IRS. Good luck.
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Eric G.
Honolulu, HI · Member since 2017 · 85 posts · 73 votes
8y
Originally posted by @Jeffrey H.:
I had a carry permit in baltimore city. I let it go. You should not carry a gun which is something i learned quickly. Why?? 1. Only good as a reaction to something that has already happened, at which point your done. Best case is that they never know, worst is they take it and use it on you. Are u going in a questionable house gun drawn? carrying a gun is good as a deterent for those that know u carry, and thats it. Then what if you use it?? Ready for the legal consequences??? ...best way to avoid problems is to know how to avoid them. Know where u are, go with others, know your surroundings, dont put yourself in vulnerble situation.
lol uh, if there is one place in America where you probably need to defend yourself with a CCW, it's probably Baltimore. I respect the personal preference though.
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