I just got my W-2 for last years winnings and it made me wonder. Since I have to claim this as income, do you guys know if I can then write off my tackle purchases? Do you guys do this? I know I could ask a tax professional but I was just curious what you guys do.

The more you win or earn, the more you are allowed to write off.    You don't have to run it like a business.    But you should allow a professional to do it the first time, then next year, you will know the forms to use.

Or do like another buddy did.   He used turbo tax online, allowed it to walk him through, then he went to the public library and down loaded the forms they didn't have on hand to do his on his own.

Any meals, gas, and lodging that was due to fishing or prefishing can be written off.    

 

great question, How about sponsorship money?  If a company pays your entry fees and what not, what should you do about that, do you claim that as income?

Ah the beauty of H & R Block, they have done my taxes for years so I just tell them how many tournaments and they adjust for every thing including rising fuel cost.

I even deduct a couple of trips to the lake as pre-fishing  

Don't forget to keep all receipts on tackle, gas, entryfees, meals, and lodging for any and all trips spent on fishing.

You could have 5000.oo in expenses and only 1000 in winnings, and only be able to use part of the receipts.

The more you win, they more they allow you to right off.

matt

I usually get 1099s from the trails I fish.I save reciepts on just about everything that involves the tournaments or fishing.Then,like Matt mentioned,you can only deduct so much per dollar made.

I usually get 1099s from the trails I fish.

You're right, I don't know why I wrote W-2.  I get a 1099 as well.  Thanks for your help guys!  Time to start saving all my reciepts.  Don't know why I didn't think of this before.

I would be caerful with tackle, b/c you will have to figure values and likely put on a depreciation schedule.

With mine, I write off all legitimate travel and entry expenses, such as gas, hotels, tournament entry fees, licenses, etc.

You can treat it oneof two ways: hobby or a business. If you treat it as a business, you need to show a profit every now and then, or the IRS will consider it a hobby and you can't write off as much, meaning, if you get audited, you could have problems.

The tax advice of a CPA is definitely worth the money you pay in this area, especially if you have significant income and exoenses associted with tourney fishing.

You can right off any expenses you incured in fishing, even your boat.  I usaully just take off enough to cover my winnings so I don't have to pay any taxes.

Shadcranker's suggestion of seeing a CPA is on target.

If you do not make a profit in three (3) years the IRS, under the rules established by Congress, will consider the activity as a hobby.

It you take your expenses as a deduction you better be ready to defend them as the IRS will audit you.  

If you title your boat in a company name and use it for business purposes the IRS will be very interested in this activity.

My wife works for the Treasury Department and you 1) never want to talk to her and 2) she says you never want to be audited by the IRS.

So invest some bucks into a CPA's opinion and avoid the IRS at all costs.

Good advice Sam.

Don't forget your reciepts for any boat repairs or servicing.

Keep everything that pertains to the fishing expense. Make sure you can document each expense because they will question everything. I had an audit several years ago and it was shocking the things they questioned and wanted to know. Be sure you log your milage correctly. They can check it easily with map quest or any number of sites. Don't pad the milage. They kicked out two trips due to the milage not up to snuff. Yeah I might have added a few miles.