Do I actually have to turn a dollar?
 

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.

RE: Do I actually have to turn a dollar?
 

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.

RE: Do I actually have to turn a dollar?
 

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?

RE: Do I actually have to turn a dollar?
 

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.;)

RE: Do I actually have to turn a dollar?
 

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

RE: Do I actually have to turn a dollar?
 

Yep.

RE: Do I actually have to turn a dollar?
 

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.

RE: Do I actually have to turn a dollar?
 

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?????

RE: Do I actually have to turn a dollar?
 

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...

RE: Do I actually have to turn a dollar?
 

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.