Expensing Hunting through business LLC

[atmat]

We are always hiring IDVortex but our employees will be working while we are gone.

Savage.

 

[dusky]

Is your business tables?

Nay. Would be fun though.

 

[TandKHunting]

I just got done with a state audit that was supposedly random. We passed with flying colors because we don't play the what can we get away with game. They went into every transaction from two years ago. We had to explain every single one. If something doesn't look right...they will find it. I can promise you that. Then a simple audit turns into a complex audit with lots of digging and questioning.

You can write off whatever you want, but before you do it....ask yourself one question. Can I explain this and justify it? Good CPA's will be conservative because an audit is a pain in the ass with implications costing tens of thousands of dollars in back taxes.

When I was a DUI cop....I read about a statistic one time. On average, folks drive drunk like 80 times before being caught and arrested for a DUI. Just like you should drive sober like you could get caught if you drove drunk that night...always run your business like you could be audited tomorrow. It will make your life much easier.

 

[DuckDogDr]

No, Its the IRS.....

No doubt it is… someone trying to earn their keep with the new cuts

 

[Bluumoon]

I just got done with a state audit that was supposedly random. We passed with flying colors because we don't play the what can we get away with game. They went into every transaction from two years ago. We had to explain every single one. If something doesn't look right...they will find it. I can promise you that. Then a simple audit turns into a complex audit with lots of digging and questioning.

You can write off whatever you want, but before you do it....ask yourself one question. Can I explain this and justify it? Good CPA's will be conservative because an audit is a pain in the ass with implications costing tens of thousands of dollars in back taxes.

When I was a DUI cop....I read about a statistic one time. On average, folks drive drunk like 80 times before being caught and arrested for a DUI. Just like you should drive sober like you could get caught if you drove drunk that night...always run your business like you could be audited tomorrow. It will make your life much easier.

Maybe we’ve covered it in this thread, but as a hunting related business what do you feel comfortable writing off? Serious question.

My current business I don’t get cute, at most someone could look at business meals, but I keep notes of what was discussed for each.

If a guy had another business and wanted to drip his toes in a hunting/shooting related business venture, I’m curious what is reasonable vs not reasonable.

If the business depends on field testing gear/field experience to better designs, are hunting trips reasonable? Like wise if a a product/service requires rifles/ammo to proof the concept, etc.

For example you sell gaiters and believe they are the toughest/best hunting gaiters available. The only way to test/ proof that would seem to be take them hunting.

Not trying to get cute w things, but being able to write some stuff off makes it more appealing to dive into something.

 

[Bluumoon]

I just got done with a state audit that was supposedly random. We passed with flying colors because we don't play the what can we get away with game. They went into every transaction from two years ago. We had to explain every single one. If something doesn't look right...they will find it. I can promise you that. Then a simple audit turns into a complex audit with lots of digging and questioning.

You can write off whatever you want, but before you do it....ask yourself one question. Can I explain this and justify it? Good CPA's will be conservative because an audit is a pain in the ass with implications costing tens of thousands of dollars in back taxes.

When I was a DUI cop....I read about a statistic one time. On average, folks drive drunk like 80 times before being caught and arrested for a DUI. Just like you should drive sober like you could get caught if you drove drunk that night...always run your business like you could be audited tomorrow. It will make your life much easier.

Maybe we’ve covered it in this thread, but as a hunting related business what do you feel comfortable writing off? Serious question.

My current business I don’t get cute, at most someone could look at business meals, but I keep notes of what was discussed for each.

If a guy had another business and wanted to drip his toes in a hunting/shooting related business venture, I’m curious what is reasonable vs not reasonable.

If the business depends on field testing gear/field experience to better designs, are hunting trips reasonable? Like wise if a a product/service requires rifles/ammo to proof the concept, etc.

For example you sell gaiters and believe they are the toughest/best hunting gaiters available. The only way to test/ proof that would seem to be take them hunting.

Not trying to get cute w things, but being able to write some stuff off makes it more appealing to dive into something.

 

[Lionheart]

My best friend Roy owned a ranch In Wyoming. He would pay .25c per prairie dog tail if you shot them on his ranch.
He always said that was so the rodent control shooting was clearly established as a legitimate business operation.

 

[KurtR]

I just got done with a state audit that was supposedly random. We passed with flying colors because we don't play the what can we get away with game. They went into every transaction from two years ago. We had to explain every single one. If something doesn't look right...they will find it. I can promise you that. Then a simple audit turns into a complex audit with lots of digging and questioning.

You can write off whatever you want, but before you do it....ask yourself one question. Can I explain this and justify it? Good CPA's will be conservative because an audit is a pain in the ass with implications costing tens of thousands of dollars in back taxes.

When I was a DUI cop....I read about a statistic one time. On average, folks drive drunk like 80 times before being caught and arrested for a DUI. Just like you should drive sober like you could get caught if you drove drunk that night...always run your business like you could be audited tomorrow. It will make your life much easier.

The state of South Dakota does not mess around with audits and they will find any reason to break it off in you. We have been through a few

 

[TandKHunting]

Maybe we’ve covered it in this thread, but as a hunting related business what do you feel comfortable writing off? Serious question.

My current business I don’t get cute, at most someone could look at business meals, but I keep notes of what was discussed for each.

If a guy had another business and wanted to drip his toes in a hunting/shooting related business venture, I’m curious what is reasonable vs not reasonable.

If the business depends on field testing gear/field experience to better designs, are hunting trips reasonable? Like wise if a a product/service requires rifles/ammo to proof the concept, etc.

For example you sell gaiters and believe they are the toughest/best hunting gaiters available. The only way to test/ proof that would seem to be take them hunting.

Not trying to get cute w things, but being able to write some stuff off makes it more appealing to dive into something.

I write off most hunting and shooting related things, as I utilize pretty much everything for advertising content. Being a gear company, we have to buy a lot of hunting products that directly relate to the products we manufacture..

Guns & Ammo - I do shooting videos and pictures at the range that we use to highlight our suppressor covers, gun cases, and ammo wallets for advertising.

Hunting Clothes and Boots - Worn to show case our bino harness, leg gaiters, etc.

Optics - Pictures and videos showcasing the function of the bino harness / range finder pouch.

Bows & Arrows - Used to showcase our bow sling and quiver in pictures and videos.

Hunting tags / travel expenses - Product testing and advertising content in the field.

T & K Trailer - Used for hunting shows, advertising, etc.

S X S - Used for hunts to film and photograph content in areas inaccessible via truck, field test products, develop new products, etc.

What I don't do is remodel my kitchen, book a beach vacation, or fund my wife's makeup obsession at Sephora, and write it off as a business expense. That's the kind of stuff that will raise red flags during an audit.

It really comes down to common sense. If you can easily explain it and relate it directly to your business without much effort you likely won't have a problem. Problems occur when you can't easily explain how it relates to your business. You have to come up with some far fetched explanation that ties a clearly business unrelated transaction to your company. That is when an auditor is going to call BS and you're going to get dissected.

 

[Reburn]

I write off most hunting and shooting related things, as I utilize pretty much everything for advertising content. Being a gear company, we have to buy a lot of hunting products that directly relate to the products we manufacture..

Guns & Ammo - I do shooting videos and pictures at the range that we use to highlight our suppressor covers, gun cases, and ammo wallets for advertising.

Hunting Clothes and Boots - Worn to show case our bino harness, leg gaiters, etc.

Optics - Pictures and videos showcasing the function of the bino harness / range finder pouch.

Bows & Arrows - Used to showcase our bow sling and quiver in pictures and videos.

Hunting tags / travel expenses - Product testing and advertising content in the field.

T & K Trailer - Used for hunting shows, advertising, etc.

S X S - Used for hunts to film and photograph content in areas inaccessible via truck, field test products, develop new products, etc.

What I don't do is remodel my kitchen, book a beach vacation, or fund my wife's makeup obsession at Sephora, and write it off as a business expense. That's the kind of stuff that will raise red flags during an audit.

It really comes down to common sense. If you can easily explain it and relate it directly to your business without much effort you likely won't have a problem. Problems occur when you can't easily explain how it relates to your business. You have to come up with some far fetched explanation that ties a clearly business unrelated transaction to your company. That is when an auditor is going to call BS and you're going to get dissected.

In summary.

If you have to do mental gymnastics to justify the purchase you shouldn't. If a 3 yr old cant make it make sense you shouldn't.

 

[TandKHunting]

In summary.

If you have to do mental gymnastics to justify the purchase you shouldn't. If a 3 yr old cant make it make sense you shouldn't.

Bingo. So many business owners overthink it. Auditors are normal human beings. From the ones I have met they are reasonable and operate off of common sense. They are not out to get you, unless you run your business deceptively to avoid taxes.

 

[IDVortex]

So you guys are saying I won't be able to write off a can for my construction business and have my logo put on it and claim it as advertising? Dang.

 

[SteveAndTheCrigBoys]

So you guys are saying I won't be able to write off a can for my construction business and have my logo put on it and claim it as advertising? Dang.

Just get your nail gun threaded 5/8x24

 

[UKwildcatfan]

I'd let my very creative CPA determine what's legit and what's not. His name and firm have skin in the game.

 

[Bluumoon]

I write off most hunting and shooting related things, as I utilize pretty much everything for advertising content. Being a gear company, we have to buy a lot of hunting products that directly relate to the products we manufacture..

Guns & Ammo - I do shooting videos and pictures at the range that we use to highlight our suppressor covers, gun cases, and ammo wallets for advertising.

Hunting Clothes and Boots - Worn to show case our bino harness, leg gaiters, etc.

Optics - Pictures and videos showcasing the function of the bino harness / range finder pouch.

Bows & Arrows - Used to showcase our bow sling and quiver in pictures and videos.

Hunting tags / travel expenses - Product testing and advertising content in the field.

T & K Trailer - Used for hunting shows, advertising, etc.

S X S - Used for hunts to film and photograph content in areas inaccessible via truck, field test products, develop new products, etc.

What I don't do is remodel my kitchen, book a beach vacation, or fund my wife's makeup obsession at Sephora, and write it off as a business expense. That's the kind of stuff that will raise red flags during an audit.

It really comes down to common sense. If you can easily explain it and relate it directly to your business without much effort you likely won't have a problem. Problems occur when you can't easily explain how it relates to your business. You have to come up with some far fetched explanation that ties a clearly business unrelated transaction to your company. That is when an auditor is going to call BS and you're going to get dissected.

Now this I can work with

 

[IDVortex]

I'd let my very creative CPA determine what's legit and what's not. His name and firm have skin in the game.

Not all CPAs are created equal.

 

[Maverick1]

I'd let my very creative CPA determine what's legit and what's not. His name and firm have skin in the game.

Saul Goodman?

 

[oregonoutdoors]

Another scenario. I buy 5 acres in x state out west. I need to look in on my property once per year..is it possible to write off fuel. Hotel. Food. Etc for this visit?

Not sure for bare land but for rentals further than an hour from your home you can write off two trips a year to work / check on your investments. I think the key would be actually having profits for the write offs. I sell RE in a mountain town and my wife manages rentals, many of our clients do this. A couple of ski or mountain bike trips to check on the rentals.

 

[Reburn]

I'd let my very creative CPA determine what's legit and what's not. His name and firm have skin in the game.

Most firms have you sign a disclaimer that says in legal words. I have never gotten around not signing one.

You give us the stuff we file the stuff. We dont audit your stuff for accuracy. We hold no resposibility / liability if your stuff is not accurate and you get audited. However we will be there with your stuff at YOUR COST if you do get picked for a rectal exam.

So they dont really have skin per say. They show up to the audit and you pay them more.

 

[fwafwow]

Most firms have you sign a disclaimer that says in legal words. I have never gotten around not signing one.

You give us the stuff we file the stuff. We dont audit your stuff for accuracy. We hold no resposibility / liability if your stuff is not accurate and you get audited. However we will be there with your stuff at YOUR COST if you do get picked for a rectal exam.

So they dont really have skin per say. They show up to the audit and you pay them more.

This is true. CPAs still have some "skin" in the game, as they do face some exposure to the IRS, but that has to be something pretty egregious. Like syndicated conservation easements. And having someone prepare your return can protect you against some penalties - with exceptions.