Expensing Hunting through business LLC

[Shepherd]

If there was ever a time to take chances with the IRS now is probably a good time. The IRS, after years of being woefully under-funded, hired more enforcement agents a year or two ago but the current administration is re-assigning them to work on immigration.

 

[Reburn]

If there was ever a time to take chances with the IRS now is probably a good time. The IRS, after years of being woefully under-funded, hired more enforcement agents a year or two ago but the current administration is re-assigning them to work on immigration.

Current admin has 4 years.
IRS can elect to go back 6 years on an audit. Any money owed included penalties and interest.
Seems like a good idea.

 

[displacedtexan]

If there was ever a time to take chances with the IRS now is probably a good time. The IRS, after years of being woefully under-funded, hired more enforcement agents a year or two ago but the current administration is re-assigning them to work on immigration.

I know several people who lost with that gamble involving the EPA.

Less funding means if you can justify your job by bringing money in...

 

[Legend]

Are we sure anyone will still be working at the IRS? After all they are federal employees.

 

[Gobbler36]

**** the govt
Applaud you for trying to do this!

27 million went to Sesame Street in Afghanistan don’t forget that

 

[IDVortex]

If you have a LLC consult your CPA. These rules have changed significantly.

100% this.

I am a GC, and if I can convince my CPA/Tax lady my business needs a thermal scope to look for cold spaces or air leakage I'll be getting a scope lol


Oh, so far. I haven't been able to convince them of it. So no Thermal lol.

 

[Z Barebow]

I have an LLC (Consulting Business) No way I would try this!

Other deductions. Is it a home based business? If so, dedicate some sq footage for LLC. In turn that % of home expense is deductible. ( Property Tax, utility, water/gas/trash) etc.

 

[PredatorSlayer]

FAFO - this is why we need a flat tax.

 

[Marbles]

If you always do the right thing, you won't ever have to learn your cell mates name!

Sadly, not always true. But, if you always do the right thing then you have integrity, which cannot be bought.

 

[Marbles]

I do, however, remember reading somewhere that you can only write off business expenses for like 2-3 years. If youre not showing a profit by that time I dont think you can continue "sinking" money into it and be able to write it off. I didn't research if just selling a few items would count as turning a profit of some sort. Maybe that's why they offer merch as well, so they can show they're turning some kind of profit however small it might be.

I'm under the impression that a lack of profit for 3 out of 5 years is a high audit risk, however it doesn't define a business. The question comes down to can you demonstrate a legitimate effort to make a profit in a manner a business would.

 

[Terrapin]

I expense the majority of my hunting, and shooting equipment to my LLC… then again I exclusively design & manufacture hunting, and shooting equipment.

My accountant squeaked a little when I deducted a dog… fortunately I had some shotgun products that year.


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[Davyalabama]

Pay unto Ceaser what is Ceaser's and unto God what is God's. We have many different LLC's, I'm sure one or several of them I could work around and mark off a fair amount of hunting/fishing stuff, truck, SXS, but why? To save a few bucks? To go to sleep at night wondering if one of those IRS agents are going to try to make a name for himself with my wife and I? We've been blessed beyond measure, I would rather stay in His good graces any day. We write off every legitimate expense we can, we just aren't going to put our businesses nor our reputations on the line.

"Better one hand with tranquility than two handfuls with toil and chasing after the wind."

 

[MallardSX2]

FAFO - this is why we need a flat tax.

Every time I hear of someone writing off items and trying to evade taxes by navigate nonsense loopholes, I can't help but be pissed off and wish for a flat tax rate. But I know what comes with that....

Mostly, I want a flat tax rate so I can see my sister (who whistles her democrat tune from the city and has been suckling from the government teat for 20 years, doing basically nothing, working from home in her pajamas, and getting paid WAY more than she is worth all while complaining she doesn't get paid enough) get fired.

I promise you, every one of you would be highly disappointed that your tax dollars are paying her salary.

 

[fwafwow]

Sounds right. This is my 2nd year as a legit business and I was told it would be in my best interest to start showing some profit after 3 years.

What type of business?

Current admin has 4 years.
IRS can elect to go back 6 years on an audit. Any money owed included penalties and interest.
Seems like a good idea.

I think the time for audit is normally 3 years (from the later of the due date or the filing of the return), unless they are alleging material (I think 25% IIRC) omission of income, or a crime. Definitely agree with penalties and interest, and with your "good idea" sarcasm.

I continue to find it interesting that folks post about how to bend the tax rules (or worse) and there is a decent percentage of people who cheer them on. But if someone posts something that suggests you are merely unfamiliar with a hunting rule or regulation, or that you have violated a rule, then the pitchforks come out. (I don't bend or break tax or hunting rules, but just note the way people view the wildlife resource vs public fisc differently. And no, I don't think the government or IRS does a good job, but that doesn't give me a pass on following the rules.)

 

[Reburn]

I think the time for audit is normally 3 years (from the later of the due date or the filing of the return), unless they are alleging material (I think 25% IIRC) omission of income, or a crime. Definitely agree with penalties and interest, and with your "good idea" sarcasm.

You are correct but if they find stuff within that 3 year period they can elect to go back up to 6. We recently had an audit on one of our LLC's. Luckily our CPA is on it and they found nothing to dispute.

 

[WISGUY]

What type of business?

Manufacturing. Primarily wood tables and other furniture. 50% of my business is wholesaling specialty lumber.

 

[fwafwow]

Manufacturing. Primarily wood tables and other furniture. 50% of my business is wholesaling specialty lumber.

Thx. Might be a stretch to deduct your hunting stuff. IMHO.

 

[moewells100]

As a few have eluded to, if you have the cash to do destination hunting trips, you can afford to hire a CPA to advise. Some of the best money I spend every year is for their expertise.

 

[lyingflatlander]

What???!!! I get all my tax advice from a hunting forum! That’s pure gold dude!