I have thought about starting some kind of mail order hunting website for a long time. I have done well on ebay, and though I am overseas and not involved with it anymore I don't think this is a bad way to start.

I noticed that quite a few guys are doing equipment reviews, and posting those reviews on hunts on youtube.

If you are using all this as part of your business, can you use the cost of the hunts as a business expense?

What about the guys that do something similar and then post a review on their website?

Ideally we'd like to get to 200-300 products (hopefully less) of things that don't have a small mark up ( like guns do), and not necessarily make a lot of money at it, but use it as to justify the expense of hunting.

Anyone know if this can be done?

A friend of mine has a hunting store here in Germany, and he does exactly that. We have been talking and he convinced me that if he could do it, I could probably do the same thing in America.

Any thoughts, he does a lot of group hunts that he puts on all over Europe. And even if his cost aren't covered by the group package, he said he only cares about using having it as a justifiable expense.

It is possible. However, one has to be aware of the hobby loss rules. If the activity reflects a loss in more than 2 of the most recent 5 years, one will have a problem.

They also have to meet the "ordinary & necessary" test under section 162 of the Internal Revenue Code. Let me give you an example. Advertising is normal. However, it is not normal for Joe's Chicken Shack grossing $100,000 a year to advertise on the Super Bowl. Therefore ordinary & necessary might be challenged.

There is no yes or no answer. It depends on facts and circumstances. If these trips added to your sales in amounts consistently greater than the cost of the hunts, you have a good case. If these trips do nothing to your sales, hope you don't get audited.

You might want to check out IRS Publication 535.

Thank you very much, I will do more research.

My friend is a professional taxidermist and he claims hunts as tax deductions.I am not sure how much,but they are a business expense as he takes the mounts to SCI and Sheep events for a display of his work.OB

As a full time knife maker...for me it is field testing...R&D..and I truly do that.

There is no such thing as a tax problem until the IRS comes knocking. Someone deducting an expense and the IRS approving it are two vastly different things.

quote:

Originally posted by larryshores:
There is no such thing as a tax problem until the IRS comes knocking. Someone deducting an expense and the IRS approving it are two vastly different things.

Great comment and confirms the benefit of hiring a good accountant. I consult mine continuously in regards to my business and will continue to do so.

Thank you to everyone.

It merits more research for sure.

The IRS usually audits less than 2% of all tax returns.

I have a feeling that a lot of people who claim to take these kinds of deductions just haven't been audited yet.

quote:

Originally posted by lindy2:
The IRS usually audits less than 2% of all tax returns.

I have a feeling that a lot of people who claim to take these kinds of deductions just haven't been audited yet.

Yup

quote:

Originally posted by larryshores:

quote:

Originally posted by lindy2:
The IRS usually audits less than 2% of all tax returns.

I have a feeling that a lot of people who claim to take these kinds of deductions just haven't been audited yet.

Yup

I shared a camp in Tanzania some years ago with Henry Mills, one of the founders of Mill's Fleet Farm (KKR recently bought them). Anyone who has ever traveled in Wisconsin has seen a Mill's Fleet Farm. I asked if he expensed any of his hunts since he displayed his mounts in the store.

He looked at me like I was crazy and explained that while he did display the taxidermy in his stores, it would open the door to trouble during an audit.

As a booking agent, Im very careful what I claim, its just not worth it. I have used my vehicles and that's about it..As to my guns etc. nope that's just running up a red flag.

It's dumb to get cross wise with IRS over something that didn't help you out much in the first place, deductions vary a lot...Just pay your taxes and live a happy life..