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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His income is of that 1099 is $19,542 He goes to TN, Ga Fl and is on TV. This is the first year he had done this line of work. He takes people on guides to hunt and he does have receipts.Originally posted by veritas View PostSueBabyComment
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Teach a man to fish
Sound like he's expanding the rule:
"Give a man a fish and you feed him for a day.
Teach a man to fish, and for the rest of his life you can sell him fishing gear (and guide service)""The only function of economic forecasting is to make astrology look respectful" - John Kenneth GalbraithComment
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JohnH
I always get a kick out of your posts!! Thanks for putting a smile on my face once-in-awhile.
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sounds familiar
Is this client from Missouri originally? If so, I did his return one year and he didn't come back.Originally posted by SueBaby View Post
Mainly because I reduced meal expenses by 50%.ChEAr$,
Harlan Lunsford, EA n LAComment
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No ,from here in La. Your post is La at bottom but at the top from is Al. If La where?Originally posted by ChEAr$ View PostSueBabyComment
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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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clarification
Ah yes, people do get confused sometimes, thinking I'm in Los Angeles.Originally posted by SueBaby View Post
But LA stands for Lower Alabama.ChEAr$,
Harlan Lunsford, EA n LAComment
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Oh I see, I guess mine should be HLA for Higher Louisiana like up north (30 to the Ar. line)Originally posted by ChEAr$ View PostSueBabyComment
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Yes, I did just that. Guns are used for the hunting places and the TV show. Which I would never watch. Thanks again.Originally posted by veritas View PostSueBabyComment
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