Late 1099 Tax Opinions / Advise

Looking for advise or opinions on 1099's for tournament winnings. I could obviously go on and on with deductions to offset the winnings. (I also play the Stock Market the same way: Buy High - Sell Low) My question is, where do YOU stop? Who cant use more deductions, but I also don't want to get sideways with the IRS.

I'm pretty conservative with the IRS. If you are winning money and/or promoting businesses (sponsors) for consideration, then you have a right to deduct when directly related to the revenue generation. I pick a pretty conservative percentage and use that for all costs and the big one is depreciating your boat (truck for some). You can't lose money every year or it is considered a hobby.

I keep mine simple. I never show a loss. I write off expenses down to the amount won. That's not hard to do.

The way I look at it, fishing is a hobby for me. I don't want my hobby to cost me anything on my taxes so I write off just what I need to. I also don't expect my hobby to HELP me on my taxes either. That is where you start to get in trouble. Sometimes it's hard to convince Mr IRS that it's a business and not a hobby.

You do want to keep all expenses for the year though. There is something (I don't remember the exact phrase) that allows you go back a certain number of years and use those expenses (losses) to off set a major win if you do happen to win a boat or a big prize. It's called something like accumulated losses or something like that.

What are these "winnings" you speak of?

Thanks Bob and Willie. I figure just enough so it wont cost me even more. but not to give a RED Flag

wow

I deduct expenses until my net income is zero. As someone already said, that's not hard to do because every year I spend a lot more on fishing than I win. I start saving receipts in January just in case I win something.

I think the guys who get in trouble are the ones who try to claim a loss to offset their other income. If you are trying to claim fishing is your business, which is what claiming a loss implies, keep in mind that in order to an activity to qualify as a business you should show a profit 3 out of 5 years. At least that's what the IRS rule of thumb used to be...

dbullmoose ......?
why did you remove your reply post to CTA so fast ?
a little touchy this afternoon ?
hit "send" before your brain kicked in ?

It was actually removed for me Nutman. Perhaps I WAS a little touchy considering I was finishing my 2014 taxes that were due today. I was looking for help to knock down the considerable check I had to write to the IRS today, thanks to the ones who offered actual responses to the questions.

Understandable,,,,,,,
same boat here, only mine aren't done yet.

you know they make CPA's for this type of advice

I'm an accountant, but I don't do tax/public accounting. A family member is a CPA and he told me what I am doing is proper.

can we confirm that dbullmoose is not an undercover IRS agent on a.... fishing expedition (huehuehue) to catch TFF members in tax fraud?

Don't mess around with the IRS,I'm still paying those bastards for $$$ they say I still owe.If they want you bad enough they will get you no matter what kind of records you have.It all depends on the auditor!!! Don't trust them or volunteer any info.Just saying....