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.

Rick James

I believe you have 2 years to show a profit. I am not 100% sure on this but if I remember correctly that is what my fathers accountant said about our family's organic meat business.

crutch

Not sure about your business situation, but I always though you had to turn a profit in 5 yrs, or it was considered a hobby?

HuntingBry

I'm not sure what the law is for making money, but I'm pretty sure it's not a good idea to start a post discussing the best way to go about fleecing the IRS.

GMMAT

It's either above board or it isn't. I'm not trying to fleece anyone, as we're speaking hypothetically.

hardcorehunter

Yep.

GMMAT

So I could carry expenses for 5 yrs and write them off.......then declare the business a "bust".....but still realize the tax breaks over the years my "business" was viable?

Isn't there an old saying about something sounding too good to be true?????

Greg / MO

You can operate with a year-end deficit for five years before you're going to draw some real attention... And if you get audited, you better have some good documentation showing it was an attempt at a real business, and more specifically -- what you attempted to change within those five years to make the venture profitable.

An audit can be an excruciating experience, and the IRS can go back and collect back-taxes for the whole time period if your business was deemed nothing more than a hobby.

HuntingEd

Also, I dont think you'd be able to add those things as expenses unless your venture was a video production or something. You'd have to justify that they were direct costs of operating....

If you want to start a hunting video production company w/ me we could have fun.... for four years...

GMMAT

I've been an independent contractor (side business) fora number of years.....but the amounts I'm talking about writing off haven't been eyebrow raising. Now....if I could write off a few hunting trips....my bows.................a 4-wheeler......some leased land......I'd have something, there.