Fishing

Jump to content




fishing

bass fishing
 
fish

fishing

bass fishing

fishing
fish

fish

bass fish

fishing forum

bass fishing


fishing tips

Fishing Tips
 
fishing
 
fishing

bass fishing

fishing

fishing

fish for bass

fishing tips

fish


Photo

Tournament Wins & Taxes


  • Please log in to reply
9 replies to this topic

#1 jhoffman

jhoffman

    Shake This

  • Members
  • PipPipPipPipPipPipPip
  • 2,355 posts
  • LocationBellefonte, PA
  • My PB:Between 6-7 lbs
  • Favorite Bass:Smallmouth
  • Favorite Lake or River:Juniata/Susquehanna, Raystown, Chautauqua

Posted February 18 2013 - 06:42 PM

When you win a large tournament, is that like hitting the lottery in that they take the taxes on the spot? Do you claim it as extra income on your filing at year end? Do you have to pay on it quarterly, how does it all work? Do they send you a w2 at the end of the year?

 

At what point do you have to start claiming it, $1000+ in total wins?



#2 wnybassman

wnybassman

    I Love Bass Fishing!

  • Members
  • PipPipPipPipPip
  • 609 posts
  • LocationCovington, NY
  • My PB:Between 7-8 lbs
  • Favorite Bass:Smallmouth

Posted February 18 2013 - 06:47 PM

I think it is $600.   I had 1099's sent to me two years in a row, but it was very easy to offset the income with expenses.



#3 james 14

james 14

    Short Fish

  • Members
  • PipPipPipPip
  • 379 posts
  • LocationBrandon, FL
  • My PB:Between 8-9 lbs
  • Favorite Bass:Largemouth
  • Favorite Lake or River:Wherever the next tourney is.

Posted February 18 2013 - 09:05 PM

I think it is $600.   I had 1099's sent to me two years in a row, but it was very easy to offset the income with expenses.

 

Yeah by the time you deduct for boat, gas, tackle and licenses you could get a return! :eyebrows:



#4 wnybassman

wnybassman

    I Love Bass Fishing!

  • Members
  • PipPipPipPipPip
  • 609 posts
  • LocationCovington, NY
  • My PB:Between 7-8 lbs
  • Favorite Bass:Smallmouth

Posted February 18 2013 - 09:09 PM

Yeah by the time you deduct for boat, gas, tackle and licenses you could get a return! :eyebrows:

 

Can't get a return, can only break even.   I asked.    lol



#5 gripnrip

gripnrip

    Kicker

  • Members
  • PipPipPipPipPipPip
  • 1,258 posts
  • Facebook:https://www.facebook.com/darin.davis.12
  • LocationNorth East Oklahoma
  • My PB:Between 7-8 lbs
  • Favorite Bass:Largemouth & Smallmouth
  • Favorite Lake or River:Tenkiller and Grand Lake (home of the 2013 Classic!)

Posted February 18 2013 - 09:11 PM

In order for expense deductions, it needs to be a business.  


God grant that I may fish until my diying day;
And when at last I come to rest, I'll then most humbly pray;
When in His landing net I lie in final sleep;
That in His mercy I'll be judged as good enough to keep! -Homer Circle

#6 jhoffman

jhoffman

    Shake This

  • Members
  • PipPipPipPipPipPipPip
  • 2,355 posts
  • LocationBellefonte, PA
  • My PB:Between 6-7 lbs
  • Favorite Bass:Smallmouth
  • Favorite Lake or River:Juniata/Susquehanna, Raystown, Chautauqua

Posted February 19 2013 - 07:45 AM

I thought you could itemize your costs of doing the job, much like a mechanic needs tools?

 

Can you fly under the commercial fisherman area?



#7 SirSnookalot

SirSnookalot

    Jack Crevelle, the Ultimate Warrior

  • Members
  • PipPipPipPipPipPipPipPipPip
  • 10,004 posts
  • LocationDelray Beach, Florida
  • My PB:Please Choose
  • Favorite Bass:Please Choose
  • Favorite Lake or River:Lake Worth Lagoon

Posted February 19 2013 - 02:59 PM

I don' have the exact answer but an email to the irs and state would yield the correct answer, or your CPA.

Can you fly under the commercial fisherman area?

Perhaps if one held a commercial fishing license, if one doesn't it's a moot point.

Yeah by the time you deduct for boat, gas, tackle and licenses you could get a return!  :eyebrows:

Probably most would be filing single or jointly if married and not file a schedule C, your 1099's would be included with your other 1099's or w-2's and you would be entitled to deduct allowable deductions, interest, charities , etc. But it brings us back to the beginning, are fees, gas, tackle, boat depreciation, travel expenses, repairs, etc etc., allowable for a recreational fisherman who just happens to win some money.  I'm going to make an uneducated guess.......NO.  All that said, you can deduct whatever you want, as long as it doesn't get audited, lol.


I can teach you all you need to know, but I'll never teach you......ALL I KNOW !
http://www.bassresou...h-florida-fish/

 


#8 wnybassman

wnybassman

    I Love Bass Fishing!

  • Members
  • PipPipPipPipPip
  • 609 posts
  • LocationCovington, NY
  • My PB:Between 7-8 lbs
  • Favorite Bass:Smallmouth

Posted February 19 2013 - 05:42 PM

I don't remember exactly what my CPA told me, but said something about the Misc. 1099's and I could have expenses against that particular income only.  The first year I had fishing income from one organization that totaled $3700 or so, and I had receipts for over $5000 to wash it out.    It was his idea, not mine.   I only saved receipts just in case.    The second year was only $1200 or so.



#9 Megastink

Megastink

    NEVER GIVE UP!

  • Members
  • PipPipPipPipPipPip
  • 1,067 posts
  • LocationTelford, PA
  • My PB:Between 6-7 lbs
  • Favorite Bass:Largemouth & Smallmouth
  • Favorite Lake or River:Anything with BASS in it.

Posted February 20 2013 - 09:34 AM

I hear that you can deduct hobby (fishing) expenses up to the amount of your (tournament) winnings. So, I I won $300, I can deduct $300 worth of gear.

My tax preparer at H&R block told me thAt, but you need receipts from your winnings.

#10 Gavin

Gavin

    I Love Bass Fishing!

  • Members
  • PipPipPip
  • 160 posts
  • LocationSt. Louis, MO
  • My PB:Between 7-8 lbs
  • Favorite Bass:Smallmouth
  • Favorite Lake or River:Missouri Ozarks

Posted February 23 2013 - 02:47 PM

If someone gives you a 1099 you better declare the income. Most Tournament winnings will be hobby income. Report the income and offset it with your hobby expenses up to the amount of your hobby income(You cant use a hobby loss to offset other income as if it were a legitimate trade or business). Talk to your CPA and consult the IRS's Hobby Loss Rules for guidance.




0 user(s) are reading this topic

0 members, 0 guests, 0 anonymous users