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Thread: Tax write off..

  1. #13
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    RE: Tax write off..

    http://www.ustaxcourt.gov/InOpHistor...ll.SUM.WPD.pdf

    Basically, if your name is not appearing on Bassfan regularly, and you don't have sponsors carrying most of your expenses, you're taking a major risk if the IRS audits you.

    You CAN NOT make a living on tourney winnings alone. Even most of the pros on the elite trail don't. Look at their average winnings per tourney, less all their expenses, and figure if they have enough left over for all your other living expenses. You may break even or even come out ahead over your tourney expenses, but no way you could ever expect to win enough to pay all your living expenses at home, plus fund all your tourney expenses.

    You could find yourself in deep financial doo doo, and having a big IRS bill, if you can't convince the IRS you're trying to make a living by tournament fishing.

  2. #14
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    RE: Tax write off..

    It was explaned to me that you do not have to make a proffit but have to have income?
    Rowdy

  3. #15
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    RE: Tax write off..

    I'm sorry but I have to agree with Rowdy. Since I do receive a couple of 1099's which show the US Government I am having taxable income and I have to report these amounts every year---then you can show how you offset this income by the expenses you incur to receive that money.
    Now, I only account for the tournaments I actually get a 1099 form. Most tourneys don't even report your income, but if you fish BFL/FLW's and or B.A.S.S events or even Renegade Circuit, you will get a 1099 and you have to report this at tax time. So like any other place you make an income, you can show your expenses to get that income.
    To each his own.

  4. #16
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    RE: Tax write off..

    If audited each case would stand on its own merit.

    But the short story from the above case, would be you're trying to run a profitable business by fishing tournaments, and you're expecting to turn a profit. The term tax write off, wouldn't imply that.


  5. #17
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    RE: Tax write off..

    Eric,

    I was told that if I won more that $600.00 that I would have to claim it on my taxes.I keep reciepts and log the miles for everything I do including prefishing.I have won enough to probably make a profit this year.My accountant said he would set me up as an LLC.I will kep in touch when I find more out. Good luck in Arkansas.

    Nolan

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