I'm thinking on doing some hunts much like that has been reported like authors such as Craig Boddington, Jim Shokey and others may have done with outfitters around the world by recieving a basically donated hunt then I write about the adventure or video it then have the story published or sell the video. I'm just curious as my accountant stated that I need to report the donated hunt daily expenses,travel, etc. that I recieve as income to the IRS. I wonder how these individuals handled this issue let alone the guns optics etc.? My gosh for as much as some of these individuals hunt and travel their tax bill could be substantial. I wonder if it is worth the effort if you do it as my accountant suggested or since most of the hunts occur offshore do they even have to report the donated hunt/daily fee as income? My accountant said if I was even using a companies product and representing it as my own I need to represent to the IRS as I had recieved that as income. Seemed a little strict to me?

Shoot your accountant in the head as he/she is clearly a worthless pussy.

My doctor says I have a brain tumor and I should take it out right away. I think that's kind of drastic. What do you guys think?

That is complicated, your first hurtle is to have a business not a hobby. The advice you will get here is just worth what you pay for it.

DOJ, exactly.

Sir - First off, I've personally booked Jim Shockey on numerous African Safaris, and I assure you, not a single one of them was "donated." He payed for his hunts, just like the rest of us.

Second, its doubtful anyone would pay you for your video footage, and unlikely you would get "paid" for articles either. You might get some published for free, but getting paid for it would be unlikely. At least until you become a "known" author/hunter, etc.

Same with guns, optics, etc. Until you are a known entity, no one is gonna "give" the equipment to you for free. Even then, getting it "free" or "donated" is unlikely.

As already mentioned, if you start a legit "hunting industry" business, certainly all expenses that pertain to hunting or the business, will be a write-off. But as a hobby, that won't fly.

Not trying to discourage you, just giving you some info.

Good Luck!

Your accountant is technically correct; the IRS would probably look at donated trips... as income.

Technically,you win a gun in a raffle that should be counted as income as well.

It is up to you if you report it or not.

Jim

My mind and typing fingers were on a speed trip after the heated friendly discussion with my accountant and I was just curious because of the points he made. Jim Shockeys name shouldn't have been mentioned as he probably is a Canadian Citizen not bound by the US IRS. I really enjoy what he and others have done but was just curious. I just thought my accountant was pretty strict on his interpretation and thought I would run the question by others for clarification and curiosity sake on what takes place. Aaron,I also truly doubt I would ever be able to participate at the any level the professionals do but look forward to their further efforts to entertain us all. You keep booking those hunts for them and I wish the best for you all.

Singleshot, would the value of the trophy taken have to be reported as well? I watch some of these very nice whitetail deer and other trophy animals being taken on TV and I do understand there is value to these animals. I guess it varies from state to state determined sometimes by the state themselves in game law violation fines but also some animals in some states I have been told the animals are marketed to be used behind high fence operations so technically I guess they would have value and maybe that should be reported as income as well.

Bob, my best advice to you would be get a new accountant as it appears you do not value his professional advice. If I had a client that came in and told my he had searched an internet hunting site for tax advice I would plain fire him as he is wasting his time and mine. Been there done that!

Nope, I'll keep him. I respect him but just curious what others thought as I think you can learn from others either on the internet or other places. I certainly do what he says may not like it but do as he says. Getting other opinions I don't think is a bad thing.

Bob, I am no tax accountant but having a small business I am well aware of taxes.

But technically speaking if someone gave you a hunt for an article that would be bartering and a taxable as income.

From the IRS website Bartering Income

Bartering occurs when you exchange goods or services without exchanging money. An example of bartering is a plumber doing repair work for a dentist in exchange for dental services. The fair market value of goods and services received in exchange for goods or services you provide must be included in income in the year received.


Are there a few wildlife writers making money and thousands working another job to make ends meet?

Jim

Either you and your accountant are failing to communicate, or your accountant doesn't understand the fundamentals of expenses and income as they relate to a business venture.

If you are attempting to engage in a hunt as a business venture, the object of which is to sell the product of the hunt (videos or literature), then the costs that go into creating the video or literature are deductible expenses. If the hunt costs you nothing, then there is no deduction; by the same token, there is no implied income since the hunt is an input into the production of the product. This is pretty simple and straight-forward, just like if you were a builder that the cost of the 2x4's you bought to frame the walls are deducted from the gross profit when you sell the structure.

It is likely that the larger problem your accountant is uneasy about is whether doing something that is normally a liesure activity can be successfully reported as a business expense without the IRS rejecting it as your simply attempting to write off what amounts to a vacation. The answer to that would probably hinge on whether you are able to show some significant revenues or prospect of revenues from the "production input costs" (air travel, ammunition, film, labor, etc.) that you claim are going into the costs of your final product. If you have a history of producing film or literature and selling it on the market, then it would be much easier for you to prevail in claiming the hunt costs as expenses.

Insofar as your accountant insisting on counting the fair market value of the hunt as income, well, I'm flabbergasted. Hasn't he ever heard of a gift? And unless the "donated" hunt were donated by a person who files an income tax return in the U.S. and that person deducted the value of the hunt as a business deduction, then there would be no implied income in any event.

I am not an accountant, nor would I presume to give dependable tax advice on a hunting and shooting forum, but I do believe that you and your accountant are either failing to understand one another, or you are failing to present the scenario in the manner you intend it.

But as others have said, it is pretty far fetched to believe that, in this day of intense media and entertainment competition, you can succesfully be the writer, producer, director, star, agent, and distributor of any form of successful commercial media. Particularly if you have no previous engagement in the field.

quote:

Originally posted by txlonghorn:
My doctor says I have a brain tumor and I should take it out right away. I think that's kind of drastic. What do you guys think?

Did he stay at a Holiday Inn last night?

The word gift implies nothing received in return. The fact the "gift" is given with the expectaion of a return i e promo etc. it is not a gift. Like I said above the advice received here is just worth what it cost. Nuff said, put a fork in me I am done!

quote:

Originally posted by Bob Keeler:
I'm thinking on doing some hunts much like that has been reported like authors such as Craig Boddington, Jim Shokey and others may have done with outfitters around the world by recieving a basically donated hunt then I write about the adventure or video it then have the story published or sell the video. I'm just curious as my accountant stated that I need to report the donated hunt daily expenses,travel, etc. that I recieve as income to the IRS. I wonder how these individuals handled this issue let alone the guns optics etc.? My gosh for as much as some of these individuals hunt and travel their tax bill could be substantial. I wonder if it is worth the effort if you do it as my accountant suggested or since most of the hunts occur offshore do they even have to report the donated hunt/daily fee as income? My accountant said if I was even using a companies product and representing it as my own I need to represent to the IRS as I had recieved that as income. Seemed a little strict to me?

I looked into what you are discussing. Here is what I learned.

1. This industry is an incredibly difficult business to make any "real" money in. Most of the guys you see on TV are scraping by hand to mouth. The bigger names - Boddington, Carter, the Bushnell knuckleheads, Waddel, Lee and Tiffany - make enough to carry on and do well. The rest - not so much.

2. Endorsements come at a price - fame. The minute you are not "famous" - adios to any gear or paid compensation.

3. The travel and time in the bush is expensive and consumptive on your soul. Expect to be out 180 days a year and hustling sponsers and speaking engagements 180 days a year. Go to every trade show, rent booth space, shake hands with more rednecks than you ever thought existed.

You get the picture.

Lastly, if you use an accountant, obviously you make money doing something productive. I suggest keep doing whatever you do and go hunting for fun. Write for fun and post your stuff here.

Earnest (JudgeG) is about the best writer I have read and he posts here. I believe he is a lawyer or judge in real life.

Free advice - worth what your accountant told you...

You would likely not be able to deduct the costs incurred in the hunt because there has to be a "likely expectation of profit" Seeing as you haven't currently got business income from selling stories or videos it could be argued that there isn't much probabbility of being able to sell them in the future. They might let it pass for one business year but probably not for the next year.

The best advice would be for you to ignore your accountant. Then when the IRS knocks on your door to do a complete audit of your "business" you'd learn a bunch!! The worst mistakes I make usually lead to the steepest learning curve.

Bob,

One thing you will find is that many people will discourage you from trying to be a writer; I can't speak for videographers. It seems like the industry is very "clubby" - you won't find other writers generally offering much encouragement.

If you do elect to try your hand at writing, start small. Write for some regional pubs. Pick a particular focus; while I have written about hunting, for the most part my writing is about shooting, and most of that long range shooting.

As a part time writer you can make around $600 per story, but $300 to $500 is more common, and regional pubs pay much less. You won't get rich doing it.

Twenty or thirty years ago it was unheard of to get sponsors; I have been told by one industry long timer that Bob Petersen would not allow any writer to act as consultant, PR rep, or other moniker used to describe what we call "Pro Staff" today. Obviously that has changed quite a bit.

As for free hunts, most of them are provided by companies hired by manufacturers to promote their products. You will be asked to go or your editor will contact you with an offer. I find it incredibly cheezy to ask for a free hunt but then maybe I don't have the balls that some do. But trust me, most writers don't pay for most of their hunts; one guy I met expresed shock that CB has paid for some of his.

I used to write a lot more than I do now, but today I make more in a week than I used to make all year writing every spare minute I had.

As for taxes, I have deducted the costs of my hunts, equipment, etc. to the extent that I always show a profit (you can't go forever claiming a loss). I am no tax attorney and have not been audited. I know one writer who deducted the cost of his taxidermy in his office. I am sure many push things to the limit. And remember, not everything can be expensed; some things must be capitalized.

I wrote a guide on becoming a writer; I offer a money back guarantee and so far no one has taken me up on it. One guy wrote to me that he is now on the staff of a magazine. If you are interested, shoot me a PM. Any vets can get my guide for free. Good luck.

I have never heard Craig say his hunts where donated. I maybe wrong but I have interviewed him with Tim for high caliber radio and that was part of the interview

Gotta be a business like other reported.

As Aaron mentioned nothing is free and you won't have people lining up to pay you for your footage.

Sponsors will laugh and say produce and then we will talk etc.

My buddy tried and and ran it as a legit business and produced dvds, website, etc and he had some nice tax write offs but it still cost a lot of money and he enjoys hunting or it absolutely would not be worth it.