| Re: Wow, I really shouldn't have added this up
[Re: Jake]
#161795 12/03/08 11:15 AM 12/03/08 11:15 AM |
Joined: Apr 2007 Posts: 334 Seattle,Wa Don_Atchley
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Joined: Apr 2007
Posts: 334 Seattle,Wa | Also, you can only show a business loss for three continuous years. I think this changed several years ago. They said you only have to make an attempt at running a business. You don't have to be successful...  Hobie Tiger 2003 | | | Re: Wow, I really shouldn't have added this up
[Re: Don_Atchley]
#161803 12/03/08 12:24 PM 12/03/08 12:24 PM |
Joined: Jan 2004 Posts: 1,884 Detroit, MI mbounds
Pooh-Bah
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Pooh-Bah
Joined: Jan 2004
Posts: 1,884 Detroit, MI | Also, you can only show a business loss for three continuous years. I think this changed several years ago. They said you only have to make an attempt at running a business. You don't have to be successful... It's a little more complicated than that. The "three out of five" rule is part of Internal Revenue Code Section 183 (commonly called the "Hobby Loss Rule") which is a determinant of whether an activity has a "profit making motive". In general, you can only deduct "hobby" losses to the extent of gains - i.e. you can deduct your racing expenses against your winnings. This would prevent anyone who has a regular day job from deducting regatta expenses from their regular income. However, if you are a business owner (like Karl), who have an entity engaged in a "for profit activity" (cabinet shop), you can deduct expenses qualified under IRC Section 162 (ordinary and neccessary - like advertising)from your business income without regard to the "3 of 5" rule. However, the quantity of those dedections may come under scrutiny in the event of an audit (was the amount of advertising justified for the size of the business, etc.). For example - if advertising was the largest expense line item for a cabinet shop, it would certainly raise some questions. As always, keep meticulous records and receipts when dealing with the IRS. | | | Re: Wow, I really shouldn't have added this up
[Re: mbounds]
#161831 12/03/08 03:49 PM 12/03/08 03:49 PM |
Joined: Nov 2005 Posts: 5,582 “an island in the Pacifi... hobie1616
Carpal Tunnel
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Carpal Tunnel
Joined: Nov 2005
Posts: 5,582 “an island in the Pacifi... | As always, keep meticulous records and receipts when dealing with the IRS. And, if you do get audited, don't take their first ruling as gospel if it goes against you. My dad did 30 years with the "revenuers" in a number of different jobs. The last one was Chief of Conference which was the last place you went before going to court. He told me 75% of their case load was computer entry error. One year I was expecting about $400 back. Instead of getting the green check I go a form that said I'd paid minus $3.60. They wanted $1000 plus $1500 in penalties. I called dad, who prepared my return. He said he was going to the Fresno data center the next day to discuss the same kind of problems and would let me know what happened the next night. The day went something like this. He went into the meeting where they shucked and jived him for an hour. He then asked them to pull my return but only gave them my SS#. They passed it around the room and said, "We're gonna screw this guy to the floor." My dad asked, "Did anyone happen to see who prepared the return?" No one had. My dad said, "IT WAS ME!!!"The rest of the day consisted of him raging through the building and them sounding like Yorkies that just has their feet stepped on. I wish I'd been there. US Sail Level 2 Instructor US Sail Level 3 Coach | | | Re: Wow, I really shouldn't have added this up
[Re: hobie1616]
#161838 12/03/08 04:08 PM 12/03/08 04:08 PM |
Joined: Aug 2006 Posts: 182 Appleton, WI blockp
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member
Joined: Aug 2006
Posts: 182 Appleton, WI | You had to go and do that didn't you... I was fine with my head in the sand!!!
Since I don't race my cat, I spend very little per year on my boat. For example, relatively speaking, a "large" sailing expenditure for me last year was to buy $40 worth of line and $100 worth of Vertglass products. So to say the least, I was surprised at what some of you say you spend on sailing in a year. So this little topic prompted me to put together a sheet on my projected ski expenditures for this year.
Ugh!!! 2 trips west, a handful of planned weekends in MI, lift tickets, travel, hotels, etc... my spreadsheet says to plan on about $4k this winter. And that's not counting any spontaneous trips north to chase good snow storms (usually at least once or twice a year), or another set of used powder skis that I may or may not buy this year.
Now I'm beginning to feel shame... | | | Re: Wow, I really shouldn't have added this up
[Re: blockp]
#161841 12/03/08 04:14 PM 12/03/08 04:14 PM |
Joined: Nov 2002 Posts: 5,558 Key Largo, FL & Put-in-Bay, OH... Mary
Carpal Tunnel
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Carpal Tunnel
Joined: Nov 2002
Posts: 5,558 Key Largo, FL & Put-in-Bay, OH... | Now I'm beginning to feel shame... Don't feel shame. According to the registration forms for 20 years of our doing sailing seminars, skiing is the number one second favorite sport of sailors. In fact, maybe for many it is the first favorite. | | | Re: Wow, I really shouldn't have added this up
[Re: blockp]
#161845 12/03/08 04:33 PM 12/03/08 04:33 PM |
Joined: Dec 2001 Posts: 5,590 Naples, FL waterbug_wpb
Carpal Tunnel
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Carpal Tunnel
Joined: Dec 2001
Posts: 5,590 Naples, FL | Now I'm beginning to feel shame... It's not shame.... it's a HOBBY. Rarely do things we enjoy make monetary sense
Jay
| | | Re: Wow, I really shouldn't have added this up
[Re: waterbug_wpb]
#161874 12/03/08 06:04 PM 12/03/08 06:04 PM |
Joined: Apr 2007 Posts: 291 JACKFLASH
enthusiast
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Joined: Apr 2007
Posts: 291 | Now I'm beginning to feel shame... It's not shame.... it's a HOBBY. Rarely do things we enjoy make monetary sense Like crystalmeth 
Collin Casey Infusion Platform + C2 rig and rags = one fast cookie
| | | Re: Wow, I really shouldn't have added this up
[Re: F-18 5150]
#162220 12/08/08 12:48 PM 12/08/08 12:48 PM | andrewscott
Unregistered
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Unregistered | $3,329.90 a year to do the thing you love... sounds like a bargan to me... | | | Re: Wow, I really shouldn't have added this up
[Re: F-18 5150]
#162229 12/08/08 02:11 PM 12/08/08 02:11 PM |
Joined: Dec 2001 Posts: 5,590 Naples, FL waterbug_wpb
Carpal Tunnel
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Carpal Tunnel
Joined: Dec 2001
Posts: 5,590 Naples, FL | Would these "team-building" weekend courses work for the deduction?
Jay
| | | Re: Wow, I really shouldn't have added this up
[Re: F-18 5150]
#162236 12/08/08 03:27 PM 12/08/08 03:27 PM |
Joined: Jun 2001 Posts: 12,310 South Carolina Jake
Carpal Tunnel
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Carpal Tunnel
Joined: Jun 2001
Posts: 12,310 South Carolina | If you think sailing is expensive , Hire a theripist. How many beach cat sailors you know see a shrink? I don't know any but i know shrinks are alot more expensive than sailing. Lets not call it racing lets call it theraputic competition and write it off as a medical expensce. I second that!
Jake Kohl | | |
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