has anyone started an LLC to write of their hunting expenses?

I'd recommend talking with a tax accountant before undertaking this strategy.

Edit...autocorrect.

[This message has been edited by Ol Jock 99 (edited 4/3/2013 12:25a).]

That sounds like tax evasion to me, which is illegal.

And before undertaking I agree there is some understanding

Unless you're legitamitly using the LLC as a business it's tax fraud.

Boats n Hoes

Unless the hunting is directly related to the business you run, it's not deductible.

Will it also be used to write off field-dressing lessons?

Prestige World Wide, LLC

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Unless the hunting is directly related to the business you run, it's not deductible.

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That is correct. Now you could write off 50% of it under the meals and entertainment category if you are going on this trip with colleagues or clients to discuss business

I believe you can write off the entire thing if you are having some sort of continuing education seminar or class at the site.

You dillweed.

Couple of things...first, you don't need to start an LLC to accomplish what you are trying to do. A LLC is all about liability, not taxes. You can go down to the court house and file a ficticious name as a sole proprietor, open a bank account under that dba, and bingo you've started a business with the same tax consequences as a LLC...

I am not a CPA or lawyer, and as such this should not be construed as professional advice.

I'll say this, if it were me, I'd go down and file the ficticious name Cartridge World's Hunt Guide's. There is no law in this country that says your company has to be profitable, so if it so happens that you spend more money on your business "managing your wildlife" than you do bringing in income from your guides it just makes you a bad business man. In that "unfortunate" circumstance, technically, yes you could report a business loss.

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There is no law in this country that says your company has to be profitable, so if it so happens that you spend more money on your business "managing your wildlife" than you do bringing in income from your guides it just makes you a bad business man. In that "unfortunate" circumstance, technically, yes you could report a business loss.

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Maybe no law, but if you are using a "business" to write off "losses" that look a whole lot more like "fun" the IRS will be on you quicker than flies on poop.

They will disallow any deductions that aren't reasonable and disallow any "business" that isn't run like a business. Such "businesses" are a giant red flag to the IRS.

So if you were planning to deduct a $50,000 King Ranch pickup on your 5 acres with one cow.....it ain't gonna fly.


Troy's Tractors dot com

[This message has been edited by CanyonAg77 (edited 4/3/2013 9:15a).]

http://mobile.texags.com/Forums/34/Topics/2138930

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Maybe no law, but if you are using a "business" to write off "losses" that look a whole lot more like "fun" the IRS will be on you quicker than flies on poop.

They will disallow any deductions that aren't reasonable and disallow any "business" that isn't run like a business. Such "businesses" are a giant red flag to the IRS.

So if you were planning to deduct a $50,000 King Ranch pickup on your 5 acres with one cow.....it ain't gonna fly.

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Pigs get fat, hogs get slaughtered

You'd be a fool to go overboard with it, but I've heard it does work...who knows, I might have been able to get away with it for 10+ years now had I decided to go that route when I started hunting

I know a guy that does it with his business. But he takes employees out, and they ALWAYS talk business around the campfire.

I am not sure how much he deducts but I know he does.

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You'd be a fool to go overboard with it, but I've heard it does work..

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Like any tax fraud, you may get away with it forever, you may get audited and caught the first time you try it. And if they find fraud, it opens up many past year's return to scrutiny.

It all depends upon your risk tolerance and your adherence to the Aggie Code of Honor.

That being said, I have no problem using every legal means to avoid taxes. Taking employees or guests hunting as a part of the business, I can see that being a legitimate, defensible expense. Especially if it really is a team-bonding, a reward, or a real business development / contact / brainstorming thing. In that type of case, I might do it by taking a percentage of the trip off, not all of it.

And to go Politics Board, it's ridiculous that we have a tax system so full of holes, exceptions, tricks, etc.; as well as being so punishing and crushing.

Dump it for some sort of flat tax system and let people spend their money in logical ways.

What about taking your best customer that buys $1,000,000 worth of product per year on a guided hunt? Seems legit to my accountant.

There actually is a law that directly addresses this, wrecking crew. It's in the internal revenue code, it's called the "hobby loss rules", and the IRS is quite aggressive about enforcing it

http://www.irs.gov/uac/Business-or-Hobby%3F-Answer-Has-Implications-for-Deductions

I mean if you "legitimately" talk business and this even would likely bring a client to use your services, then it can be deducted.
I think Denzel Washington was the one who said..."It's not what you know, it's what you can prove"

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What about taking your best customer that buys $1,000,000 worth of product per year on a guided hunt? Seems legit to my accountant.

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The post right above yours:

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Taking...guests hunting as a part of the business, I can see that being a legitimate, defensible expense. Especially if it really is...a real business development / contact...thing

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There actually is a law that directly addresses this, wrecking crew. It's in the internal revenue code, it's called the "hobby loss rules", and the IRS is quite aggressive about enforcing it

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Who's talking about hobbies? We're talking about OPs new business adventure here...in fact, OP should hire me as a consultant to market his new outfitters business, I'll send an invoice, and since I know you're just starting up and cash strapped I'll accept a free hunt as payment

Yeah. You'll lose every time.

Lets just say, I know for a fact that you don't lose every time, I have a pretty reliable source that says it can work if done correctly

May I say again:

Like any tax fraud, you may get away with it forever, you may get audited and caught the first time you try it. And if they find fraud, it opens up many past year's return to scrutiny.

It all depends upon your risk tolerance and your adherence to the Aggie Code of Honor.

So it's okay to commit tax fraud if you don't get caught.


How's that honor code thing go?

An example would be my AR uppers. I sell them to clients for hunting. If I use them in the field, I could write that off as product research, or if I have a prospective client in the blind with me to demonstrate the product, I can deduct my expenses. I don't do that bc I don't take customers hunting, but if you use common sense, it's not that difficult.

[This message has been edited by tx4guns (edited 4/3/2013 8:52p).]

tx4guns-

Sounds like you're leaving a little money on the table, it would legitimate in my book to deduct taking a client hunting.

But I understand, sometimes I do the same type of thing, as the documentation is sometimes a bigger PITA than the money gained.

I don't think anyone has trouble with a deduction like you are talking about.

What bothers some of us is folks apparently talking about setting up tax dodges to deduct hunting expenses that aren't real business expenses.

Crew - I was specifically addressing your statement that no law requires you to make a profit. If you run any activity under which you lose money consistently, the tax code deems that a hobby and therefore losses not deductible. The burden then shifts to you as taxpayer to prove otherwise, and with activities being described here you will lose. Tax court judges aren't stupid. You can hang out in their court during an open docket call and see for yourself.

Now, the dude who caught hell for buying a case of shot gun shells for the price of a box should be enjoying the hypocrisy in this thread

Damn stuttering



[This message has been edited by aggiesq (edited 4/3/2013 9:03p).]

It's not fraud, it's 100% legal, we're talking about a business venture...8 out of 10 new businesses fail, it happens...if they want it to be illegal they'll change the code...btw, my source claims it has already survived one audit, it is signed off on by his CPA every year, and with a 6 figure tax bill due in a couple of weeks doesn't feel too awful guilty about not paying his fair share...but I'll pass along everyone's concerns as a caution

My non-professional opinion is that if you set up a 'business' to lose money, just to be able to deduct your hobby expenses....

ethically that would be fraud.

And it would be a completely different situation from someone who sets up a business with a plan to make a profit, runs it in a businesslike manner, and doesn't make a profit for a few years at startup.

Well of course you have to expect profit, you need to put ads in newspapers, make magnets for your truck, get a phone number with a distinctive ring, a FB page, a business checking account, ect...at what point have I said this is not a legit business, it's got to pass the smell test

Okay, whatever.

Yyyyaaaawwwwnnnnn

This reminds me of playing poker at the deer lease. When its all over, every guy claims to have walked away with more money than they brought to the table.

Im a physician. If I take a community ER doc that can refer me patients to my ranch to hunt and fish a few times each year, would I be able to deduct gas, food, bait, etc?

What does "write off" mean?