My client has a 1099 on hunting and fishing guide. He bought over $4,000 in guns and $2,050 in fishing gear. What do I do with that? Depreciate it or use it as supplies or just list it? Never had guns before.
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SueBaby -
What does he do
in his day job?
One 1099 does not a business make. -
Ok
Sue Baby for a fishing guide or any other business the rule is the same. Anything that both costs over some amount like a hundred dollars (people argue about the figure and indeed for larger businesses a higher figure is appropriate) and is expected to last more than one year should be depreciated while anything that is either of lower cost or shorter life can be taken as a current expense. I am sure that the guns have to be depreciated. I am sure that most fishing equipment does not but I do wonder about rods and even more about reels.
Veritas, I figured the guide is a contractor who gets his clients from a guide service that takes all the payments. Depending on who decides when the guide is available to work and where the guide will take the clients, it might even be legit for him to be a contractor. I did get the impression from hunting and fishing magazines I read as a child that most guide services treat the guides as contractors and that the contractors work when they want to. It even took me a minute to see where you were going with the question. I think you are suggesting that he is only a part time guide at best and possibly even a hobbyist at worst. I personally let clients know if I think they are in danger of running afoul of the hobby situation but if they tell me it is a business and have records for me to go on I will file them as a business if that is what they wish me to do. The worst I have ever known them to do is write a taxpayer with the message that they think he has a hobby not a business and if he fies it as a business again they will attempt to make him go back several years and recalculate his tax on that basis.Last edited by erchess; 03-04-2008, 02:11 AM.Comment
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Teach a man to fish
Sound like he's expanding the rule:
"Give a man a fish and you feed him for a day.
Teach a man to fish, and for the rest of his life you can sell him fishing gear (and guide service)""The only function of economic forecasting is to make astrology look respectful" - John Kenneth GalbraithComment
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JohnH
I always get a kick out of your posts!! Thanks for putting a smile on my face once-in-awhile.
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Ok so back to her original question
assuming the guns are only used for his "business" and the guns are used on a TV show, I'm going for 7 year property. Property used in Recreation asset class 79.0Comment
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