Is it a sin to splice speaker cable?

highfigh

highfigh

Audioholic Slumlord
I was at a friend's last night and he is one of the few I know who did it right. It's combination residential-commercial property; old two story house in the front with office addition and garages in the back. Not fun to have to wire but he hired one of the best audio shops in town and did the full cat-6 hdmi run throughout. Projection screen with full surround system in the upper board room, speakers in reception, flat screen in the lower board room, tv in the kitchen, big screen and full surround in the living room, speakers on the patio and in the garage, and he can cast to multiple rooms. Doesn't hurt when you can charge it all to the business. :D
If he charged the resi part to the business, it needs to be used as rental property, if the IRS guidelines are met. If he lives there, he could be dinged at tax time. He might be able to smooth it over if he considers it a 'capital improvement' and amortizes it over the usual five years since it's not a long term (macrs) deduction like a roof, outbuilding, driveway, etc, AFAIK.

I'm not a tax expert and I didn't sleep at a Holiday In Express last night.
 
Eppie

Eppie

Audioholic Samurai
If he charged the resi part to the business, it needs to be used as rental property, if the IRS guidelines are met. If he lives there, he could be dinged at tax time. He might be able to smooth it over if he considers it a 'capital improvement' and amortizes it over the usual five years since it's not a long term (macrs) deduction like a roof, outbuilding, driveway, etc, AFAIK.

I'm not a tax expert and I didn't sleep at a Holiday In Express last night.
Only the living room setup is not used for business as there is only one kitchen. Small piece of the entire puzzle and not the kind of thing that CRA worries about unless you get audited. He has poured tens of thousands into building improvements (the new boiler alone was $25k) so a few grand extra for a TV and speakers is a drop in the bucket tax wise compared to what he has done for the local economy. I made the comment in jest (I don't know what he claimed on his business taxes) but he has run a very successful business for decades and I won't hold it against him if he bent the rules a bit. He's certainly paid his fair share in the past.
 
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