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Tax Write Off Question

Old 01-25-2007, 02:52 PM
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Hi Guys here's my question. I own a business, it's an LLC and a lot of my customers are the out-door type. If I take them out fishing on my boat how much of the total expense for the day can I write off. I.E fuel to and from shore (trailering) the boat, tolls, bait, ice, beverage (beer) food and fuel for boat.

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Old 01-25-2007, 03:13 PM
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Default Re: Tax Write Off Question

100% on the days that you use it for business according to my accountant. There are several ways to do it, but I suggest you get specific with your tax advisor to ensure you do it right or to see if it's even valuable for you to go that route...

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Old 01-25-2007, 03:15 PM
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I doubt any unless the boat is also "incorporated" .


Others might know better.

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Old 01-25-2007, 03:36 PM
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I would definitely keep reciepts for all purchases and use them for write offs but becareful if trying to write the boat itself off. It has been discussed before and there are a lot of reasons not to due it.
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Old 01-25-2007, 03:45 PM
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Default Re: Tax Write Off Question

IMO, I think that would be an open invitation to the IRS too.
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Old 01-25-2007, 03:56 PM
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Default RE: Tax Write Off Question

Fuel, dockage, bait, etc no problem. You may run into some IRS limitations on meals, since IRS imposes % limits on business deductions for meals.
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Old 01-25-2007, 04:04 PM
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Default Re: Tax Write Off Question

CaptWill - 1/25/2007 3:45 PM

IMO, I think that would be an open invitation to the IRS too.
If he keeps the credit card reciepts, how is that different than any other entertainment, meals, supplies or mileage expense that is normally accepted?
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Old 01-25-2007, 04:24 PM
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Default Re: Tax Write Off Question

bsmit24 - 1/25/2007 4:04 PM

CaptWill - 1/25/2007 3:45 PM

IMO, I think that would be an open invitation to the IRS too.
If he keeps the credit card reciepts, how is that different than any other entertainment, meals, supplies or mileage expense that is normally accepted?
Well, as I said, it was just my opinion. But some years ago, a friend had been writing off some of his (sail)boat expenses as a business expense. He owned a full-time business which was making a profit, and all seemed fine for a number of years. Then one year he got audited. He had records, but they disallowed the boat expense, stating that his business wasn't of the size or scope of one which would normally entertain clients, or some such nonsense.

In any event, he owed a lot of back taxes and interest, and he was audited every year for several years after that. If that's the way they operate, it just seems it's not worth the risk. I don't even take 100% deduction for by business vehicle, because an IRS agent once told me that even if you use your business vehicle to stop off at the grocery store, thats personal use.

We had a "routine" audit years ago, and it turned into a 9 month ordeal that cost me tens of thousands of dollars in lost revenues and even more in accountants fees, even though they could not find anything wrong. It was pure IRS harassment, and it should never have happened, but it did. You don't want to go through that.

So if you are 'just looking' for a way to write off your boat, I think you are asking for trouble. At the end of the day, it's entirely up to you.
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Old 01-25-2007, 05:50 PM
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CaptWill thanks for sharing your insite with us. As for me I'm not looking to write off the boat just the expense for the day. I just hate giving my hard earned money to the goverment. I don't mind paying my fair share but if I can right off what is legal that all I'm looking to do.
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Old 01-25-2007, 09:16 PM
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Interesting, how would it be itemized?
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Old 01-26-2007, 10:57 AM
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legitimate expenses for entertaining clients can be:

marketing espense
business entertainment, subject to 50% rules
gifts. subject to $25 per gift per recipient limits.........
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