Expensing Hunting through business LLC

[WISGUY]

Maybe get a lathe and start turning some game calls out of specialty woods and selling them.

Or start selling sandwich bags of sawdust as natural fire starter. Market it as being good up to 12,000' in elevation. Product testing would have to occur at all elevations! Sounds like a solid way to write off a new tent purchase!

 

[WISGUY]

And stove. Obviously.

 

[Bluumoon]

Welcome to the forum.

I agree with this 100% but write offs and expenses should be honest. I am so tired of seeing just about everyone who has a small business cheat on their taxes.

Just because someone hunts with a buddy and briefly mentions his business or maybe he hunts with a client friend, doesn't mean writing off all hunt costs/clothing/binos etc. is honest or fair to friends, neighbors, and fellow Americans who file honestly.

I read a book a few years ago called “Tax free wealth” the premise was 90 plus percent of the tax code tells you how to avoid taxes, not what you have to pay. Gov uses tax code to drive economy in the direction desired.

I don’t want to color outside the lines, but I’m not above adding pages to the coloring book if needed. Speaking of I really need to talk to my CPA .

 

[fwafwow]

I read a book a few years ago called “Tax free wealth” the premise was 90 plus percent of the tax code tells you how to avoid taxes, not what you have to pay. Gov uses tax code to drive economy in the direction desired.

I don’t want to color outside the lines, but I’m not above adding pages to the coloring book if needed. Speaking of I really need to talk to my CPA .

I used to do a lot with taxes for a living, so I’m interested in any details, or even one example, especially with respect to compensation income. In my experience, people think there are magical or secret techniques - if only you are informed or wealthy enough. IMHO that is wishful thinking.

 

[ResearchinStuff]

My name is Josh Bowmar. I once wrote off a whole truck that I lit on fire just to get youtube views. The proceeds from that video helped me settle my poaching case, so I could keep my hunting privileges and the content flowing. #smallbusiness

 

[fmyth]

I'm in construction. I write off a lot of stuff.

My work uniform is Simms
shirts and Orvis pants. I need good base layers and outer shells for working outside in the cold. Sitka, Filson and First Lite make some good options. I travel for work some, I have a First Lite duffle bag. Gotta keep drinks cold in the summer, there's a few Yeti coolers...

It can definitely be possible to write some stuff off, but I definitely know people who are pushing it more than a little bit.

Good luck. In 2012 I was audited. After sitting with an IRS agent and answering questions for 2 weeks over thousands of transactions they found a deduction for "work clothing". The "work clothing" deduction saved me about 2k initially but ended up costing me 13k in back taxes, penalties, and interest. The official ruling was that the items were not deductible because they could be worn for purposes other than work. For example if I had a welding business I could write off a welding helmet as it was designed for the sole purpose of welding and would not likely be worn for personal use. Boots, work shirts, pants on the other hand could be worn for personal use. My tax attorney and CPA were quite sure we could win on appeal but they had already billed me close to 10k for the audit. I decided not to gamble more of my time or money on an appeal.

 

[Geewhiz]

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.

The company I work for (builders) contracted to build a house for a guy out of town a ways. Ground squirrels everywhere. The guy requested that we shoot them if we see them but then expressed concern about bothering the neighbors. He suggested a suppressor, so now the construction company I work for very legitimately owns a tbac ultra 9. I thought that was hilarious but If they get audited, it's legitimate.

 

[RyanT26]

My name is Josh Bowmar. I once wrote off a whole truck that I lit on fire just to get youtube views. The proceeds from that video helped me settle my poaching case, so I could keep my hunting privileges and the content flowing. #smallbusiness

“Allegedly”

 

[ResearchinStuff]

Shhhhhh, still hoping the OP is an irs agent.

 

[signing off]

Since a huge part of the American population is a W2 employee, some of the small business tax in's and outs are unknown to them. But certainly talked about in friend circles.
So learning the how, is no different than financial knowledge. Hidden like porn used to be and only spoken by certain people. We should have entire forums devoted to the stuff.
I recently started a shirt business inspired by my Dad who read thousands of gun books. Grandpa machined the brass candlesticks that are part of the logo. Peashooterz.


Guess what I can write off???

 

[signing off]

Good luck. In 2012 I was audited. After sitting with an IRS agent and answering questions for 2 weeks over thousands of transactions they found a deduction for "work clothing". The "work clothing" deduction saved me about 2k initially but ended up costing me 13k in back taxes, penalties, and interest. The official ruling was that the items were not deductible because they could be worn for purposes other than work. For example if I had a welding business I could write off a welding helmet as it was designed for the sole purpose of welding and would not likely be worn for personal use. Boots, work shirts, pants on the other hand could be worn for personal use. My tax attorney and CPA were quite sure we could win on appeal but they had already billed me close to 10k for the audit. I decided not to gamble more of my time or money on an appeal.

My wife was an independent hairdresser for years. The uniform question was common for those people. As it was described to her, having your company name and or logo on clothes should be acceptable for a deduction. I'm curious if that was a detail in your audit?

 

[displacedtexan]

Good luck. In 2012 I was audited. After sitting with an IRS agent and answering questions for 2 weeks over thousands of transactions they found a deduction for "work clothing". The "work clothing" deduction saved me about 2k initially but ended up costing me 13k in back taxes, penalties, and interest. The official ruling was that the items were not deductible because they could be worn for purposes other than work. For example if I had a welding business I could write off a welding helmet as it was designed for the sole purpose of welding and would not likely be worn for personal use. Boots, work shirts, pants on the other hand could be worn for personal use. My tax attorney and CPA were quite sure we could win on appeal but they had already billed me close to 10k for the audit. I decided not to gamble more of my time or money on an appeal.

The thing my accountant said mattered was that I had a recognizable uniform.

It's all so stupid.

 

[IDVortex]

Good luck. In 2012 I was audited. After sitting with an IRS agent and answering questions for 2 weeks over thousands of transactions they found a deduction for "work clothing". The "work clothing" deduction saved me about 2k initially but ended up costing me 13k in back taxes, penalties, and interest. The official ruling was that the items were not deductible because they could be worn for purposes other than work. For example if I had a welding business I could write off a welding helmet as it was designed for the sole purpose of welding and would not likely be worn for personal use. Boots, work shirts, pants on the other hand could be worn for personal use. My tax attorney and CPA were quite sure we could win on appeal but they had already billed me close to 10k for the audit. I decided not to gamble more of my time or money on an appeal.

I do purchase clothing for me through my business, but all clothing that I buy is designed for construction. For this very reason. I don't know all tax laws, but I also try to think about what I am buying and if I get audited, can I actually come up with a legitimate reason I bought said item.

Besides ID tax commission, I am scared of the IRS and try not to FAFO with my stuff.

 

[Bluumoon]

I used to do a lot with taxes for a living, so I’m interested in any details, or even one example, especially with respect to compensation income. In my experience, people think there are magical or secret techniques - if only you are informed or wealthy enough. IMHO that is wishful thinking.

I’m not that guy, but I think everyone is entitled to learn the code (better yet find a knowledgeable CPA) and pay as little as possible. Some things are cheating and some things are just being more informed.

The book ended up being mostly about the merits of Realestate and triple net leases. My deductions are basic, I don’t even do the Augusta rule (which is reasonable) bc my accountant said it can increase a risk for audit.

My business has done well the last couple years and I’m interested in starting a hunting related business to make my hobby pay for itself.

 

[StuckInTheEast]

The things I've seen written off by numerous tradesman of various different practices...that was fully ok'd by their CPA's...would make alot of folks on this threads heads spin.
There are so many things that can be used personally and for business purposes that may or may not be used only for business purposes...not sure where the burden of proof lies...but none of these guys I know have been audited in decades of doing so. Some are more cautious than others.
My brother is not one of those, how he's never been audited I have no idea. He doesn'tmake a pile of money, butbhe doesnt pay in taxes either. I dont know how they choose to who to audit, but I can't help but think you have to put a pretty big target on your back and really push the limits...or maybe all these guys are just lucky?
To quote the advice I was given by a CPA who " colored outside the lines but still on the page"...
"If you want to lie to dodge taxes, lie about your deductions, not your income. If you get caught you'll pay what you should have and a bit more, but if you lie about your income your probably going to prison"
Alot of people see "write off" and think people are getting stuff for free...your still paying for it, just at a discount of whatever your tax rate is essentially. For most thats 30-40%
If thats worth the risk to you or your on the "it's only illegal if you get caught" or "taxes are theft" team...then expense away i guess.
All comes down to your risk tolerance I suppose.

 

[Maverick1]

What business are they in? I’d love to know how an ibex hunt was related to that business


Sent from my iPhone using Tapatalk

YouTube content creator?

 

[TheWhitetailNut]

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.

You need to be profitable every year. In other news, you could start an outdoors related business. You could have the intent to be a manufacturer, a supplier, or an influencer. If you took the time to post videos on dedicated social pages the cost for that business would flow into your personal and offset profit in another venture. You would not need to lie about running non business expenses directly through your main business. If the influencer gig isn't profitable, well... Sometimes that's the way it goes.. You win some you lose some.

 

[TheWhitetailNut]

YouTube content creator?

Them too?

 

[Mcribs]

I did well in selling one of my businesses, and currently have multiple smaller LLCs.

On the one I sold, I’m glad I didn’t have dubious trips, Sitka gear etc on the books. Just looks super shady for any buyer. Just something to consider if your LLC could ever be for sale.

My super anti tax, good old boy CPA always said, the richest people he knows, pay the most taxes. I got audited once and it sucks. Lots of this stuff can be a penny wise and a pound foolish.

 

[TheWhitetailNut]

I did well in selling one of my businesses, and currently have multiple smaller LLCs.

On the one I sold, I’m glad I didn’t have dubious trips, Sitka gear etc on the books. Just looks super shady for any buyer. Just something to consider if your LLC could ever be for sale.

My super anti tax, good old boy CPA always said, the richest people he knows, pay the most taxes. I got audited once and it sucks. Lots of this stuff can be a penny wise and a pound foolish.

All of those silly write offs look stupid when someone will pay you 11-14X at the closing table. Of course we're talking about real businesses.