Walleye Discussion Forums

Forums | Calendars | Albums | Quotes | Language | Blogs Search | Statistics | User Listing
You are logged in as a guest. ( logon | register )
View previous thread :: View next thread
Jump to page : 1
Now viewing page 1 [25 messages per page]

Walleye Fishing -> General Discussion -> It's tax time- tournament deductions
 
Message Subject: It's tax time- tournament deductions
thumper
Posted 1/30/2007 7:37 AM (#51044)
Subject: It's tax time- tournament deductions


Member

Posts: 744

I just got my 1099 from the FLW for last year. I do not want to deduct all my expenses (just a hobby, not a business), just enough to cover the money I earned. Can I use any expenses fishing related (rods, tackle, etc.) or do I have to use specific expenses for the actual tournaments (gas, lodging)?

Dave S
Top of the page Bottom of the page
Limitout
Posted 1/30/2007 9:00 AM (#51045 - in reply to #51044)
Subject: RE: It's tax time- tournament deductions


You can claim: Gas, Food, Lodging, Bait, Entrance Fee's, Tackle, Rods and equipment you bought that season. Just not the boat. You can claim maintenence on the boat.
Top of the page Bottom of the page
jerry
Posted 1/30/2007 9:03 AM (#51046 - in reply to #51044)
Subject: RE: It's tax time- tournament deductions


Member

Posts: 2567

Location: Manitowoc, WI
If it's just a hobby then you cannot deduct anything. And you still need to claim the prize money as earned income.

In the future, if you plan to fish tournament circuits, I suggest saving all receipts (hotel, gas, food, bait, tackle, entry fees, licenses, launch fees, boat purchase, etc) and keep track of your travel mileage to and from, along with travel in the tournament area, when you fish. This way, if you have a good year, you can use the deductions to bring down the taxable income earned. It also is helpful if you have a bad year, as you can claim a loss and possibly increase your tax refund.
Top of the page Bottom of the page
thumper
Posted 1/30/2007 9:17 AM (#51049 - in reply to #51044)
Subject: Re: It's tax time- tournament deductions


Member

Posts: 744

Jerry- I was under the impression that as a hobby you can claim expenses UP TO the amount you earned, but not over. Under a business you could claim a loss.

I do have receipts for my expenses from last year that will easily cover my earnings.

Dave S

Edited by thumper 1/30/2007 9:19 AM
Top of the page Bottom of the page
jerry
Posted 1/30/2007 9:48 AM (#51051 - in reply to #51049)
Subject: Re: It's tax time- tournament deductions


Member

Posts: 2567

Location: Manitowoc, WI
That may be true Dave. I would ask a tax professional. My understanding from my tax person is when the words "hobby" enter into the picture that everything changes. I still think you would be best served to run it like a business and utilize the deductions as needed.
Top of the page Bottom of the page
Mark Komo
Posted 1/30/2007 11:11 AM (#51053 - in reply to #51044)
Subject: Re: It's tax time- tournament deductions



Member

Posts: 1195

Location: Orland Park, IL
Hobby loss rule applies up to the amount of earned income. So, no loss for big out of pocket expenses. If you are a professional fisherman, then you need to show a "profit" in 3 of preceding 5 years. A business makes a profit, so thats what the IRS is looking for. Be reasonable. Once you get greedy, you get busted.
Top of the page Bottom of the page
eye Lunker
Posted 1/30/2007 2:11 PM (#51058 - in reply to #51053)
Subject: Re: It's tax time- tournament deductions


Member

Posts: 859

Location: Appleton wi
Also for what I have been told from my accountant is that if you write off gas to and from site(vehicle) you can not write off mileage.A hobby is a hobby there are no tax write off as far as I know!

Edited by eye Lunker 1/30/2007 2:13 PM
Top of the page Bottom of the page
Horshak
Posted 1/30/2007 3:52 PM (#51060 - in reply to #51044)
Subject: Re: It's tax time- tournament deductions


Member

Posts: 921

Location: Manitowoc, WI
However, I believe you can write off gas and oil instead of mileage. Add the gas and oil for the boat and I think you come out better. Don't quote me on this. I'll have to look it up. Also, you may want to look at IRS Publication 19. I believe it states that you do not have to show a profit. However, you do have to show that you are actively trying to increase your income. I'll also look into that a little further and let you know what I find. My cousin is a CPA and does my taxes. I'll ask him to confirm this.
Top of the page Bottom of the page
eye Lunker
Posted 1/30/2007 4:14 PM (#51062 - in reply to #51044)
Subject: RE: It's tax time- tournament deductions


Member

Posts: 859

Location: Appleton wi
Bob your right on the with the gas especially after last year high cost of petro. My accountant expalined it pretty much you said it in your post!
Top of the page Bottom of the page
Horshak
Posted 1/30/2007 4:45 PM (#51063 - in reply to #51044)
Subject: Re: It's tax time- tournament deductions


Member

Posts: 921

Location: Manitowoc, WI
I'll have to rescind the Publication 19 referenced in my last post. I couldn't find it. I will look for the right one and get back to you all.
Top of the page Bottom of the page
Horshak
Posted 1/30/2007 8:12 PM (#51069 - in reply to #51044)
Subject: Re: It's tax time- tournament deductions


Member

Posts: 921

Location: Manitowoc, WI
Ok here is a start. Publication 535 explains what you can deduct.
http://www.irs.gov/publications/p535/index.html

These are some of the factors used by the IRS to determine if it is a business or hobby.
http://www.irs.gov/businesses/small/article/0,,id=99239,00.html

Happy reading!!!! I recommend a fresh box of No-Doze! More to follow!

Edited by Horshak 1/30/2007 8:13 PM
Top of the page Bottom of the page
Horshak Unlogged
Posted 1/31/2007 1:12 PM (#51083 - in reply to #51044)
Subject: RE: It's tax time- tournament deductions


Here ia a link to Publication 334 which is also helpful. Still looking for the profit publication.

http://www.irs.gov/publications/p334/index.html
Top of the page Bottom of the page
Jack Dunn
Posted 1/31/2007 1:57 PM (#51084 - in reply to #51083)
Subject: RE: It's tax time- tournament deductions


I file as a business, so I have different guidelines than you that are filing as a hobby. First off, I/we file as a limited partnership. We do not have to show a profit from the fishing side of our partnership within any time period since all earnings my wife and I bring in are used in filing. Basically, all fishing expenses are deductions against total household income.

As for the gas issue. With your vehicle, you can claim either one of several ways. You can declare milage at X amount/mile, you can declare gas/fuel expense, but you can not declare both. There is also ways to deduct vehicles based on wheather you lease or buy your vehicle, and what % you declare for business versus private use. I believe to do these the vehicle needs to be financed under a business name, but I'm not 100% sure of that.

My spread sheet that I turn into my accountant each year is broken down into;
Bait & tackle, office expenses, boat gas/oil, food/meals, cell phone, Credit Card service charges, #1 Truck lease, #2 Truck lease, internet access and advertising, licenses and registrations, entry/membership fees, clothing/uniform, maintanance and repair, major inventory expenses (-$1000), long term depreciatable items (+1000). Major purchases such as my boat and the fish house I use to live in during the summer are on 10 year depreciation schedules.

Oh, I almost forgot, the $700 it costs to get my taxes done each year are deductable also!!
Top of the page Bottom of the page
jerry
Posted 1/31/2007 2:42 PM (#51085 - in reply to #51084)
Subject: RE: It's tax time- tournament deductions


Member

Posts: 2567

Location: Manitowoc, WI
Good information Jack. My bill for my tax accountant is high too, but it's worth it. I have specific instructions from him/her on what to pay, which account to pay it with, when to spend, when not to spend, which expenses are deductible, which are not, etc.....the list goes on and on. That is why I told the original poster that I would run his tournament fishing as a business, because there are some definite advantages to do so.
Top of the page Bottom of the page
Jack Dunn
Posted 1/31/2007 3:51 PM (#51086 - in reply to #51085)
Subject: RE: It's tax time- tournament deductions


I forgot to mention that I also have a second sheet that lists my set annual fishing expenses such as boat insurance, truck insurances, fish house storage fees, and winter boat storage. There is probably more to go on there, but I don't remember right now and I haven't gotten that far along on my taxes yet.
Top of the page Bottom of the page
Horshak
Posted 1/31/2007 3:55 PM (#51087 - in reply to #51044)
Subject: Re: It's tax time- tournament deductions


Member

Posts: 921

Location: Manitowoc, WI
Jerry hit the nail on the head. Don't try and do this by yourself when it comes to taxes. Get an accountant and listen to his advice after you explain to him how you plan on doing this as a business. There are way too many rules and regulations for the average person to keep up on. Come tax time, it's worth the extra money. Good Luck all.
Top of the page Bottom of the page
eye Lunker
Posted 2/1/2007 10:34 AM (#51096 - in reply to #51087)
Subject: Re: It's tax time- tournament deductions


Member

Posts: 859

Location: Appleton wi
I file as a sole proprietory and also combine it with my wifes and I reg.income but follow the things Jack, Jerry are talking about.I only pay couple hundred for my taxes to get done but as jacks says as you get into L.L,L.M and corporations things get alot more tricky,expensive but they do offer some protection that sole proprietery doesnt!

Edited by eye Lunker 2/1/2007 10:35 AM
Top of the page Bottom of the page
Jump to page : 1
Now viewing page 1 [25 messages per page]
Jump to forum :
Search this forum
Printer friendly version
E-mail a link to this thread

(Delete all cookies set by this site)