Do I actually have to turn a dollar?
02-26-2007, 12:38 PM
#12
Dominant Buck
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RE: Do I actually have to turn a dollar?
No Ed.....that could be a "side" business or maybe a Joint-venture LLC. Your added expenses would draw too much attention.
you and I could just dress the girls up in camo and sell calendars if we were trying to be "legit"?
you and I could just dress the girls up in camo and sell calendars if we were trying to be "legit"?
02-26-2007, 12:44 PM
#13
Dominant Buck
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RE: Do I actually have to turn a dollar?
It's a figure of speech, Ed. I'm considered an independent contractor (as is a realtor, for example.....or a golf professional......or a tax consultant) for tax purposes in a small side endeavor I do.
02-26-2007, 12:46 PM
#14
Nontypical Buck
Join Date: Jul 2005
Location: Eastern Shore MD
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RE: Do I actually have to turn a dollar?
ORIGINAL: GMMAT
you and I could just dress the girls up in camo and sell calendars if we were trying to be "legit"?
you and I could just dress the girls up in camo and sell calendars if we were trying to be "legit"?
We'd have to take them on hunts, and buy them "props"
ORIGINAL: GMMAT
It's a figure of speech, Ed. I'm considered an independent contractor (as is a realtor, for example.....or a golf professional......or a tax consultant) for tax purposes in a small side endeavor I do.
It's a figure of speech, Ed. I'm considered an independent contractor (as is a realtor, for example.....or a golf professional......or a tax consultant) for tax purposes in a small side endeavor I do.
02-26-2007, 12:50 PM
#15
Dominant Buck
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RE: Do I actually have to turn a dollar?
Office shall be in Ohio. It's centrally located, ya know?
We should be where the bears are for bear season photos......deer areas for Deer months....etc...
How'd you like to go to Illinois on a deer hunt........wite off all your travel expenses.....your video camera AND a camo bikini???? Hell I'm in for that! We gotta make sure we don't tart making money, though......profits are taxed at too great a rate.....and that woud ruin EVRYTHING!!
We should be where the bears are for bear season photos......deer areas for Deer months....etc...
How'd you like to go to Illinois on a deer hunt........wite off all your travel expenses.....your video camera AND a camo bikini???? Hell I'm in for that! We gotta make sure we don't tart making money, though......profits are taxed at too great a rate.....and that woud ruin EVRYTHING!!
02-26-2007, 01:11 PM
#16
Nontypical Buck
Join Date: Jan 2007
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RE: Do I actually have to turn a dollar?
ORIGINAL: GMMAT
I have a small side business that lets me (tax-wise) label myself as an independent contractor ....allowing me to expense uniforms and travel expenses as a write-off on my taxes.
If I wanted to start my own hunting business.....in an effort to take advantage of a similar situation (write off hunting trips and 'expenses').....would my business actually have to turn a dollar? Or.....could I get by with just expalining I was having bad years?....lol
Anyone have any experience in this area???
I could develop a jib for a box call or SOMETHING.....and wouldn't give a rat's ass if I sold one or not......as long as I could write off all hunting related expenses.
I have a small side business that lets me (tax-wise) label myself as an independent contractor ....allowing me to expense uniforms and travel expenses as a write-off on my taxes.
If I wanted to start my own hunting business.....in an effort to take advantage of a similar situation (write off hunting trips and 'expenses').....would my business actually have to turn a dollar? Or.....could I get by with just expalining I was having bad years?....lol
Anyone have any experience in this area???
I could develop a jib for a box call or SOMETHING.....and wouldn't give a rat's ass if I sold one or not......as long as I could write off all hunting related expenses.
I can't remember for sure but I believe the safe harbor is a profit in two out of five years. It's more stringent if your "business" has to do with horses.
Safe harbor means they will assume you are in a real business if you turn a profit in two out of five years. Depends on the business. For example, if you start up a business pumping out septic tanks and don't turn a profit for seven years, they're not gonna bother you. People don't pump out septic tanks for a hobby.
Hope that helps. By the way, I'm a retired CPA, but have been out of the practice for 'bout six years now.
02-26-2007, 01:12 PM
#17
Join Date: Dec 2006
Location: Treasure Lake DuBois,Pa.
Posts: 1,571
RE: Do I actually have to turn a dollar?
GMMAT,
Don't forget you'll need a sales and use tax license. Any sales you make are taxable. Filing is every quarter, weather you make a sale or not.
The 5 year no profit thing is correct. If you don't turn a profit they'll call you a hobby. The good news is that the IRS usually won't audit you unless you gross 1,000,000.00 for a year. This is for businesses,but depending on what you try to write-off and how will depend on if your a corp./sole propritor/partnership etc. and if they pay attention to your venture.
You can do all the daily accounting with Quick Books,but I'd get a good tax man for the end of the year.
My wife and I both have businesses out of our home , but only one of us takes the %'s of mtg. interest , prop taxes, utilities , etc. to be safe.
There's lots to it. Like I said , get a good tax guy.
Don't forget you'll need a sales and use tax license. Any sales you make are taxable. Filing is every quarter, weather you make a sale or not.
The 5 year no profit thing is correct. If you don't turn a profit they'll call you a hobby. The good news is that the IRS usually won't audit you unless you gross 1,000,000.00 for a year. This is for businesses,but depending on what you try to write-off and how will depend on if your a corp./sole propritor/partnership etc. and if they pay attention to your venture.
You can do all the daily accounting with Quick Books,but I'd get a good tax man for the end of the year.
My wife and I both have businesses out of our home , but only one of us takes the %'s of mtg. interest , prop taxes, utilities , etc. to be safe.
There's lots to it. Like I said , get a good tax guy.
02-26-2007, 01:16 PM
#18
Dominant Buck
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Join Date: Oct 2005
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RE: Do I actually have to turn a dollar?
I've"just" enough savvy that I think I could turn a profit in 2 out of 5 years. That'll be the years I don't go on "on-site fashion shoots" and don't upgrade the equipment.
Or.......Ican produce a product......that has exemplary "talent" in those years. I think I'm onto something.
Or.......Ican produce a product......that has exemplary "talent" in those years. I think I'm onto something.
02-26-2007, 01:41 PM
#19
Nontypical Buck
Join Date: Jul 2005
Location: Eastern Shore MD
Posts: 2,487
RE: Do I actually have to turn a dollar?
I think we could sell a few calanders... Maybe do some photo shoots for name brands...
I can see this going places Jeff.... We just gotta make sure the ladies dont think were taking advantage of them though....
I can see this going places Jeff.... We just gotta make sure the ladies dont think were taking advantage of them though....
02-26-2007, 01:47 PM
#20
Dominant Buck
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RE: Do I actually have to turn a dollar?
Believe me, Ed.......when my wife sees the bottom line change....that'll be the last thing on her mind.
I can't wait to see our list of "pro staffers"!...lol
I can't wait to see our list of "pro staffers"!...lol