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PAYING TAXES ON MONEY EARNED SHOOTING???

Discussion in 'Uncategorized Threads' started by senior smoke, Oct 13, 2007.

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  1. senior smoke

    senior smoke Well-Known Member

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    HELLO:
    a shooter told me after the grand, that if you win money shooting, the club will take your ssn# and report the amount of winnings to the IRS. if this is true, how much do you have to win, before the winning amount is reported? secondly, , does this mean, if i dont win any money, can i deduct my cost of shooting, entry fees, hotel bills, wear and tear on equipment, ammo etc? also, what if the shooter refuses to release his ssn# to the club, what happens then?steve balistreri
     
  2. smartass

    smartass TS Member

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    Try talking to your accountant if you want to get the straight skinny about income taxes. All you'll get here is BS from internet "experts".
     
  3. famill00

    famill00 TS Member

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    I wish I had the problem of winning money.

    Forrest
     
  4. V10

    V10 Well-Known Member

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    They are required to report accumulated event checks totaling $600 or more.
     
  5. alf174

    alf174 Member

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    On your taxes, its handled just like as if you had won it at a casino; you can offset your winnings with your entry fees, ammo, and travel costs but only as much as you won (no losses). Keep your receipts and travel records for your accountant.
     
  6. spitter

    spitter Well-Known Member TS Supporters

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    The threshold to require a 1099 Misc is $600, however they can choose to report any amount won. So even if you don't receive a 1099, you should inquire whether they report so that if yours got lost, you don;t get the IRS inquiry letter!

    Jay
     
  7. whiz white

    whiz white Strong Supporter of Trapshooting Banned

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    Happened to me many years ago at the Grand.

    I wrote off ALL previous competition, travel, practice, etc., as training. IRS said only the amount equal to my winnings.

    WW
     
  8. shootime

    shootime TS Member

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    The Michigan Trapshooting Association keeps a yearly running total of ANY winnings. If at the end of the year you exceed $600.00 Suprise you have a 1099.

    Shootime
     
  9. howie

    howie Member

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    I'm an EA and do taxes for a living. The key is that a 1099 is REQUIRED if you receive a total of $600 or more in a year from a single payer. The payer may report any amount of winnings to the IRS. These 1099s are typically reported as gambling, or gaming, winnings are reported on your form 1040. You may deduct all the money you paid for options, entry fees and ammunition as a misc itemized deductions, which is not subject to the 2% AGI cap as part of your itemized deductions on your Schedule A up to the amount of the gaming winnings reported. So if you get a 1099 for $700 and you have $1000 you can document as costs for the above, you can only claim a $700 deduction. If you can't itemize, sorry, you must report the income on the 1099 and not reduce it by anything. In my eyes, travel costs are questionable for most people. Leo can deduct travel costs as his living is derived from shooting trap. If I'd get a 1099 and can only find deductions to cover a part of the amount, I'd pay the tax and not sweat the additional tax. The IRS isn't probably going to question amounts of less that $1000 in winnings offset by deductions. Amounts of winnings and deductions over that might generate a letter. Big dollar winnings and deductions will generate a letter. Anyone who files 1099s will probably either report amounts over $600 or all amounts and send out the 1099s. If you gave a SSN and won money -- regardless of amount -- and did not get a 1099 check with the club that took the SSN. As pointed out above, you don't want to justify to the IRS why you didn't report all your income.
     
  10. hmb

    hmb Well-Known Member

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    Don't forget to deduct the cost of your gun. It is considered a small hand tool necessary in the performance of the activity in which you earned the money. HMB
     
  11. The Rock

    The Rock Active Member

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    When I win more than I spend to shoot I report it.

    Rock

    Jim
     
  12. HDLLLIII

    HDLLLIII Member

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    I read with great delight all the answers. I will never have a problem of this type. I am absolutely certain I spend 2-3 times the money on shooting that I could ever win. I would never consider deducting my shooting expenses because I don't relish the idea of spending countless hours with an IRS agent. Don't tug on superman's cape, don't spit into the wind, etc. etc.
     
  13. Big Heap

    Big Heap TS Member

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    Couple of shooters who "overlooked" reporting their winnings.
     
  14. phirel

    phirel TS Member

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    hmb- Should you deduct the cost of your gun or depreciate it over several years?
    Last year I won, if my records are correct, $540. Not too bad for never playing an option. No 1099's will be sent in but I will report this income. I have adequate receipts to counter these winnings.

    howie- Last year the postage expense for mailing in my tax return was $3.85. I plan to deduct that expense this year. Any problem with this?

    Pat Ireland
     
  15. spitter

    spitter Well-Known Member TS Supporters

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    Pat:

    Don't for the Turbo Tax/Tax Cut software expense either?!

    Jay
     
  16. Big Jack

    Big Jack Well-Known Member

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    As I have been told, If you want to come out of trap shooting with a million dollars, start with two. If I would be lucky enough to earn a profit at this game, I wouldn't complain about taxes, I'd be bragging about the winnings.


    Big Jack
     
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