?’s for those that Guide or for accounts that do taxes for those who Guide

Just curious what the people on here who guide write off on their tax’s. How does it work for Boats, Trucks, Travel expenses, Fishing equiptment, ect. Starting to think ahead to Simi retirement days and kind of think getting into some possible guiding for fun and possibly to write off some fishing expenses. I know in some business’s ( Farming comes to mind ) where some write off far more in expenses in a year than they claim in income. I believe they can only so that so many year in a row before it becomes a issue. I know the old joke that farmers only show a profit the year after they die.

I am president of my own C Corp. Be honest and be careful. Get a good accountant. You can probably claim as expenses fishing equipment you purchase, as a percentage of how much you use them for guiding. Same goes with truck…deducting percentage used for business. If you own your own boat you may have to lease it or sell it to your business in order to claim it as an expense. You can probability deduct home office expenses (up to 25% of home urilities, paper, computer, internet, blah blah blah). Do you currently pay for your own medical expenses?…health insurance? If so, your company may elect to pay them for you as a benefit…especially since you are such a valued employee and they cannot afford to lose you.
Pay yourself a modest salary and the rest in distibutions so to minimize social security and unemoloyment insurance tax total cost. As a shareholder, distibutions paid to you do not incur these taxes…but the salary you pay yourself…as it goes through payroll and, therefore, is subjuct to the taxes, had better be reasonable – you can’t have all of your income be paid through distributions or they’ll audit you for sure. Or, pay yourself through 1099 and pay all those avoidable taxes (7 1/2 % of income).
Lots of other things to consider, but I think your goal should be to turn a profit and grow your business rather than start a business in order to pay less taxes by writing off equipment you use for your hobby. IMO you start a guide business and take losses because of lack of revenue…that throws off a big red flag at IRS. They’re understaffed but they’re not idiots.

Before you take any accounting advice I’d talk to some guides on this notion of “guiding for fun”

Tim has good advice above.

Deuces wrote:

Before you take any accounting advice I’d talk to some guides on this notion of “guiding for fun”

Tim has good advice above.

I would think guiding would be as much fun or non fun as you make it. If its not fun then I don’t think you will do well as a guide.
I was more looking for a way to write off some of the fishing expenses while also enjoying teaching others to enjoy the sport. I have heard of some guides and fishermen who fish tournaments who write off almost if not all of their equipment Boat, Tow vehicle, rods & Reels, Lures, raingear, Ect. and travel expenses. Just was wondering if that was true or not.

Bernie Madoff had some interesting accounting practices. If you are looking to fish for free on somebody elses dime just do it and pay the taxes. If you think you will be so busy you need write-offs quit your job and guide full time.

Knowing a bunch of guides you are in for a surprise I think. It’s not the glamour job you think.

fishthumper wrote:

fishermen who fish tournaments who write off almost if not all of their equipment Boat, Tow vehicle, rods & Reels, Lures, raingear, Ect. and travel expenses. Just was wondering if that was true or not.

Reality is all over the spectrum. There are guys that are 100% business , under a LLC or other and the business owns/operates everything. Some guys are just a part time gig and claim a % of use. If your doing 10 outings a year, you’ll most likely just do a sole proprietorship and take your expenses and % of equipment used. If your doing 100 outings, probably a much better plan to separate yourself and let the Comany own/operate everything.

My accountant watched this carefully for me and advised me along the way based on gross $$$$ and what/where and how it was spent. It’s tough to recover 10k in equipment if your only doing 3 or 4K a year. When you are doing 50, 70, 90…. Or more a year, you need more places to strategically spend that money