Well, It's gonna happen... I'm gonna get a 10-99 for fishing.
Can anyone recommend an accountant that has been around the "fishing" block when
it comes to tax time.
I am strictly looking at next year. Just in case you was wondering if I hadn't done mine yet this year.
I'm trying to get a jump start.
Any help would be great.
Thanks,
joshimoto son ;D
Do them yourself, read alot, keep very accurate receipts and notes and breeze through tax time next year. I interviewed at a dozen CPA's this past year to take care of my business, none wanted to handle it. I spent many hours reading what I can and cannot do with the schedule c form. I had 15k in winnings last year (2005) and paid very little in taxes, I have every receipt, mile and dollar accounted for. I also do a few of my friends returns. Using Turbo Tax will cover you, thats most a CPA will do.
Mark
Like Dowd said, keep every reciept. Fishing equiment, lodging, record miles, boat gas, licence fees, professional memberships (FLW, BASS) are all deductable.
I have a CPA back in Oklahoma that does a fantastic job. I just file on a Schedule C. I have been treating fishing as a buisiness for the last 3 years. I have shown a profit 1 year, a loss the other 2 years. Hopfully a profit this year!!
If you want the name/number of my CPA PM me.
Seth
Thanks for the replies.
On something like this, do you actually get more money back?
Or does all the hard work just mean you don't have to pay as much.
Just curious.
Josh
Few questions:
1. Do you own a boat and plan on claiming it towards your business?
2. Do you have a home office that you plan, keep your tackle, and run your business from?
3. Do you keep track of every receipt, mile driven, toll ticket, hotel receipt and receipts for tackle?
4. Do you keep separate bank accounts for your fishing and personal use? The IRS does not like co-mingling of funds.
5. Do you have a DBA, INC or LLC? Not necessary but it help?
Claiming your fishing as a business helps lowers your tax liablity, ex. tax bracket.
If I were to not claim my fishing, I would be in the 27 % tax bracket, by using my business, Mark Dowd, LLC, I lower my tax liabilty to around 11 to 12 %. Where you will get more money back is the home office, this generates a big return, but you must make sure that the home office is legit, and have the proof to back it up.
These are my opinions, do not use them, I am not liable for anyone mistakes to the IRS or State of MIchigan, I am not a license CPA, nor pretend to be, but I do read about the tax code very often, and try to understand it. CHeck with your CPA.
Mark
Kind of a mini-seminar right there... including disclaimer.
Home offices are one of the IRS' favorite targets. As he says, don't mess around without good advice and some solid homework.
A summary of a LLC:
http://en.wikipedia.org/wiki/Limited_liability_company#LLC_vs._Inc._.26_Ltd.
Yeah fella's,
I wasn't really expecting to cash a check that big, this soon.
The info helps and it will lead me to the answers of questions that are most typically found out after it's too late.
I do not have a legitimate office.
I have kept receipts and milage since Jan 1 of 06.
No DBA, LLC or INC.
NO separate bank account.
I do own a boat.
Is it too late to start that stuff for this year?
I'm gonna read the link that Dan posted, and see where to go from there.
I talked to an accountant 2 years ago... one of the more High dollar ones.
And I did not learn this much from her, kind of why I'm not quite as prepaired.
thanks!
Not too late. Definitely consider professional advice before trying to depreciate your boat. The link I posted was pretty simple information on just one small part of the puzzle.
It can be tricky to find a sympathetic accountant who is knowledgeable and will work with you on figuring out what is best legally in your situation.
For mileage, you'll want to know your initial starting mileage with your vehicle. How many total miles you drive for personal and your fishing business. You'll be asked if you have another vehicle available for personal driving or not.
Get form and instructions for a federal schedule C as Dowd mentioned. Look at the self-employment tax form and instructions too just in case. Keep good notes and all receipts - make sure they are dated and identifiable for what they go with. There's also the potential to have to pay estimated taxes from your winnings at a certain point - I don't think you need to worry about that if you plan on fishing a fair amount of tournaments and keeping all expenses tracked, but that is something you want to look in on either by yourself, or through a tax professional/accountant.
I have the accountant you all need. If anyone wants me to have her contact you to assist you in your tax preparation, I'd be happy to. Just PM me. She runs a professional tax business, is 20 years experienced, and a controller for a large corporation. She won't charge you the arm and leg most CPA's will charge either. Unless you need to fight the IRS, you don't need a CPA. It's overkill.
End of shameless plug. ;D
Josh:
Being self employed, I have been down this road - pm me for the gory details, and we can chat.
Jack