Search Fishin.com

Page 1 of 2 1 2 LastLast
Results 1 to 12 of 17

Thread: Tax write off..

  1. #1
    Join Date
    Jan 1970
    Location
    Louisville, KY, USA.
    Posts
    337
    Post Thanks / Like

    Tax write off..

    I have a question for those who fish alot of bass tournaments. Do any of you record the money spent while tournament fishing (gas, oil, food, maintenance, lodging, fees, license, etc.) and use it as a type of tax write off? I would call fishing tournaments a small business in itself because you are trying to make an income, but are you suppose to incorporate yourself? I know of a guy who does this, but never really questioned on how he goes about filing his deductions when it comes to fishing expenses. I am guessing if fishing is not your main source of income it is considered a "passive income" such as real estate and passive expenses should not surpass passive income. And with writing off your acutal boat, can you take a "client", discuss some sort of "business" and say that is an entertainment expense for your company? I zm not the greatest when it comes to the tax stuff, but I am sure there is some way fisherman can get a little back with all the money we put into it, even if we are just weekend tournament anglers. Just curious as to what you all know about this and any loopholes....

    Eric Hickman Jr.

  2. #2
    Join Date
    Jan 1970
    Location
    lexington, ky, USA.
    Posts
    1,006
    Post Thanks / Like

    RE: Tax write off..

    it can be set up as a personal business but there are some requirements that come with that. Also, to be a business you have to show a profit at it 2 of every 7 years. I dont know but I got a feeling there are only a handfull of fisherman in this state that actually make $$ fishing tournaments. Most I know just blow any winnings they make on gear and things like new motors (RC5, Drew, I mean you LOL). No seriously it can be done, I know some that do.

  3. #3
    Join Date
    Jan 1970
    Location
    .
    Posts
    713
    Post Thanks / Like

    Eric....

    Eric,

    It's you ultra rich folks who exploit "loopholes" that make us poor folks have to pay more taxes!!!

    LMAO

    """"Just curious as to what you all know about this and any loopholes....""""""

    You must be one of those shifty politicians.... LMAO

    Like the fellow that is running for office, can't remember where, but he made a deal with the local filling station to sell gas for $1.22 per gallon, and he paid the difference. Seems he was buying votes, as everyone said they would vote for him. But I guess since he found a "loophole" and did not require the consumer to vote for him, it was OK!!!

    I like that we can discuss politics on the board now.

    Tight lines and God Bless

    Danny

  4. #4
    Join Date
    Jan 1970
    Location
    .
    Posts
    1,152
    Post Thanks / Like

    RE: Eric....

    ONLY if it has to do with fishing or our rites as outdoorsmen. IF it is about a politician a party or an election take it to the other board.
    It has always been that way..
    Jim

  5. #5
    Join Date
    Jan 1970
    Location
    .
    Posts
    713
    Post Thanks / Like

    RE: Eric....

    >ONLY if it has to do with fishing or our rites as
    >outdoorsmen. IF it is about a politician a party or an
    >election take it to the other board.
    >It has always been that way..
    >Jim

    My example involved fishing... thank how much each of us fishermen would like to fill our boats for only 1.22 per gallon, or goodness what if the politician was going to try to pass a law that he or she thought would benefit a city, but someone else could extrapulate a much different result from the law..... many years down the road.

    Oh well.... just a fishing thought.

    Tight lines and God Bless

    Danny

  6. #6
    Join Date
    Jan 1970
    Location
    Crab Orchard
    Posts
    71
    Post Thanks / Like

    RE: Tax write off..

    I guess if a person has to make money 2 out of 7 years some farmers
    would be required to Quit, With all their Depreciaton counted I know
    some went 20 yrs in the red. Nor could some afford to pay a lot of taxes. Some accountants would advise otherwise on the fishing.
    Don't want to start a fuss,ask your Tax person.

  7. #7
    Join Date
    Jan 1970
    Location
    Taylorsville, Kentucky, USA.
    Posts
    162
    Post Thanks / Like

    RE: Tax write off..

    Hey Eric,

    I did this for the 1st time last year. I spoke with my tax consultant on it and he did ask me if there was a chnace I woudl make more than I spend within the next 5 years. I told him it would be possible. I actaully wrote off about $4000.00 last year in entry fees, gas, hotel stays, gear, etc. It can be done but if you fill out your taxes by yourself I would not sugeest it. Keep track of all your spendings and see a tax advisor next year.

    Good Luck,
    Marty

  8. #8
    Join Date
    Jan 1970
    Location
    Louisville, KY
    Posts
    955
    Post Thanks / Like

    RE: Tax write off..

    A couple of years ago I talked to the IRS about it and the guy I talked to told me that as long as I consider my fishing as a business and not a hobby, it can be wrote off like any other business. Now, the way I look at it, I get a couple 1099's every year from diferent organizations. So, if I have to report this as income, then I feel I can write off what it took for me to make this money. Plus trying to attract sponsors and fishing somewhat bigger circuits looking to break into the Pro ranks and do this for a living, makes this like a real job. Now, if I didn't get 1099's and didn't "have to" report income---because IRS would have no record of my income, then I would probably not chance it.
    Also he told me, the government allows you to have some years of your expenses exceeding your income as with any business starting out. He also said as long as you can show you are trying to make money, it would be legit. Maybe a "loophole" and maybe not---maybe it's like any other job out there.
    I would just suggest being careful and ask alot of questions.

  9. #9
    Join Date
    Jan 1970
    Location
    Louisville, KY, USA.
    Posts
    337
    Post Thanks / Like

    RE: Tax write off..

    Thanks guys. I will look into it a little more and let you know what my accountant says. But I have been keeping records and receipts of EVERYTHING when I fish in tournaments, or practice. But I think it definitely can be done with a little research and being very careful. Thanks again!

    Eric Hickman Jr.

  10. #10
    Join Date
    Jan 1970
    Location
    Alexandria,KY
    Posts
    941
    Post Thanks / Like

    You have to make money...

    You have to win money in your tournaments in order to be able to claim expenses. I believe the minimum is $400,IMO. You can claim, gas, oil, motel, food, tackle, etc. Save your receipts as the year goes. You may not win anything until the last tournament. Get with a good tax person.
    Bassky

  11. #11
    Join Date
    Jan 1970
    Location
    Louisville, KY
    Posts
    955
    Post Thanks / Like

    RE: You have to make money...

    Yeah you can claim some of that, but look into the detials. There is only so much you can claim on food and gas is done a little different. I believe their is an amount used per mile expense. So mileage is deductible, but not gas directly. Now, I am not sure how boat gas works? That might be worth checking into.

  12. #12
    Join Date
    Jan 1970
    Location
    .Rineyville, Ky
    Posts
    42
    Post Thanks / Like

    RE: You have to make money...

    Hi EJ;

    And this is to everyone. You are allowed to claim everything you spend on a Tournament, "PROVIDING IT IS FOR A CHARITY". Most people are not aware of this so this is why I am bringing this to everyone's attention. It falls under the same law as Bingo believe it or not. But please people, keep honest receipts and don't try to cut corners on anything. Because politicians may change the law faster than you can say 1040.

    Bigboy

Similar Threads

  1. Are sponsorships tax write-offs??
    By cra97 in forum Kentucky Fishing Tournaments
    Replies: 3
    Last Post: 11-10-2008, 11:16 AM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •